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Customer Corner » Deposit Policy

One of the important functions of the Bank is to accept deposits from the public for the purpose of lending. In fact, depositors are the major stakeholders of the Banking System. The depositors and their interests form the key area of the regulatory framework for banking in India and this has been enshrined in the Banking Regulation Act, 1949. The Reserve Bank of India is empowered to issue directives / advices on interest rates on deposits and other aspects regarding conduct of deposit accounts from time to time. With liberalization in the financial system and deregulation of interest rates, banks are now free to price their deposit products within the broad guidelines issued by RBI.

This policy document on deposits outlines the guiding principles in respect of formulation of various deposit products offered by the Bank and terms and conditions governing the conduct of the account.  The document recognizes the rights of depositors and aims at dissemination of information with regard to various aspects of acceptance of deposits from the members of the public, conduct and operations of various deposits accounts, payment of interest on various deposit accounts, closure of deposit accounts, method of disposal of deposits of deceased depositors, etc. for the benefit of customers.  It is expected that this document will impart greater transparency in dealing with the individual customers and create awareness among the customers, of their rights.  The ultimate objective is that the customer will get services they are rightfully entitled to receive without demand.

While adopting this policy, the bank reiterates its commitments to individual customers outlined in Bankers’ Fair Practice Code of Indian Banks’ Association.  This document is a broad framework under which the rights of common depositors are recognized.  Detailed operational instructions on various deposit schemes and related services will be issued from time to time.

  Types of Deposit Accounts

Various deposit products offered by the Bank are assigned different names. The deposit products are categorized broadly into the following types. Definitions of major deposits schemes are as under: -

  1. “Demand deposits” means a deposit received by the Bank, which is withdraw able on demand;
  2. “Savings deposits” means a form of demand deposit which is subject to restrictions as to the number of withdrawals as also the amounts of withdrawals permitted by the Bank during any specified period;
  3. “Term deposits” means deposits received by the Bank for a fixed period, withdraw able only after the expiry of the fixed period and include deposits such as Recurring / Fixed Deposits /Reinvestment Deposits / Cash Certificates etc.
  4. Notice Deposit means term deposit for specific period but withdraw able on giving at least one complete banking day’s notice;
  5. Current deposit” means a form of demand deposit wherefrom withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount and will also include other deposit accounts which are neither Savings Deposit nor Term Deposit;
  6. Deposits from Non resident Indians:

Rupee Deposits: Rupee deposits accepted from Non –Resident Indians & Persons of Indian Origin are maintained in the form of NRO and NRE accounts .

  1. Non Resident Ordinary Account: NRIs can open Non-Resident Ordinary (NRO) deposit accounts for collecting their funds from local bona fide transactions. When a resident becomes a NRI, his/her existing Rupee accounts are designated as NRO accounts. NRO accounts also can be opened to meet the requirements of foreign nationals resident in India. These accounts can be maintained as current, saving, recurring or term deposits. The interest rates on these deposits are on par with domestic deposits. However, the interest earned is subject to tax as per IT act. While the principal amount of NRO deposits is non-repatriable, current income and interest earned is repatriable. Further, NRI/PIOs may remit amounts as announced by RBI from time to time and in accordance with the guidelines given by RBI. In such repatriations, the exchange risk is to be borne by the depositors.
  2. Non-Resident (External) Rupee Account NR(E)RA: These accounts are opened with funds remitted to India through a banking channel from  abroad. These accounts are maintained as current, savings or term deposit. If it is a term deposit, they are accepted for a minimum period of 1 year as per RBI directives. Local payments can be freely made. This is a repatriable account and transfer of funds from another NRE or FCNR (B) account is also permitted. Since these accounts are maintained in Rupees, the depositor is exposed to exchange risk for conversion in to foreign currency. 
  3. Foreign Currency Non-Resident (FCNR(B)) Account: These deposits are accepted from Non resident individuals of Indian nationality or origin (NRIs) and are maintained in US dollar, Pound Sterling, Euro, Canadian dollars and Australian dollars.  Only term deposits are accepted under this category. The depositors are protected from Exchange risk and the foreign exchange risk is borne by Bank. The minimum maturity period is one year and maximum maturity period is five years.

The interest rates payable on NRE and FCNR term deposits are as per the directives of RBI.

Account Opening and Operation of Deposit Accounts
  KYC Standards

  1. The Bank, before opening any deposit account will carry out due diligence as required under “Know Your Customer” (KYC) guidelines issued by RBI and or such other norms or procedures adopted by the Bank. Deposits are accepted from individuals in individual name or jointly in the names of two or more individuals, subject to proper identification in accordance with the principles of Know Your Customer (KYC). If the decision to open an account of a prospective depositor requires clearance at a higher level, reasons for any delay in opening of the account will be informed to the prospective customer and the final decision of the Bank will be conveyed at the earliest to him.
  2. The Bank would provide the account opening forms and other material to the prospective depositor for accepting an applicant into bank’s fold i.e., for opening an account. The application will contain details of information to be furnished and documents to be produced for verification and for record.
  1. Documentation requirements and other information to be collected depends  upon the Depositors’ constitution, risk perception, banking practices, legal requirements as well as the guidelines issued by Reserve Bank of India from time to time.

  2. The due diligence process, while opening a deposit account will involve, verification of the information/data provided by the customer in relation to his identity, address/location, occupation/business activity, sources of income, social and financial status, nature of transactions, extent of turnover, place/area of operation, mode of payments, location and business of his clients, etc., and satisfying with the accuracy of the data/information and risk categorization of the customer. Monitoring of transactions taking place in the account of the customer in relation to the expected/known level and nature of the transactions, amount of each transaction, unusual nature/extent of transactions, complexity of transactions, suspicious transactions etc. are also a part of due diligence process. The customer should not have any objection in employing external agencies by the Bank for verifying the data provided by the customer in case of necessity. In the absence of reliable documentary proof, introduction from another account holder (whose account has already been subjected to KYC guidelines) is to be provided by the prospective customer. The introducer's account with the bank should be at least six months old and should show transactions satisfactory to the Bank. Photograph of the customer who proposes to open the account and his address, need to be certified by the introducer.
  3. In addition to the due diligence requirements under KYC norms, the Bank is required by law to obtain the Permanent Account Number (PAN) or General Index Register (GIR) number or alternatively declaration in Form No.60 or 61 as prescribed in Income Tax Act / Rules.
  Other Aspects

  1. For deposit products like Savings Bank Account and Current Deposit Account, the Bank will normally stipulate certain minimum initial deposit and certain minimum balance to be maintained as part of terms and conditions governing operation of such accounts. Failure to maintain minimum balance in the account will attract charges as specified by the Bank from time to time. For Saving Bank Account the Bank may also place restrictions on number of transactions, cash withdrawals, etc., for a given period. Similarly, the Bank may specify charges for issue of cheque books, additional statements of account, duplicate passbook, folio charges, etc., as applicable to the specific type of account. All such details, regarding terms and conditions for operation of the accounts and schedule of charges for various services provided will be made known to the prospective depositor at the time of opening the account.
  2. Savings Bank Accounts can be opened for eligible person/persons and certain organizations / agencies (as advised by Reserve Bank of India from time to time). Current Accounts can be opened by individuals / Sole Proprietary concerns /partnership firms / Private and Public Limited Companies / HUFs / Specified Associations / Societies / Trusts, etc. 
  1. Term Deposit Accounts can be opened by Individuals singly or jointly/ Partnership firms / Private and Public Limited Companies / HUFs / Specified Associations / Societies / Trusts, etc.

    Deposit accounts can be opened by an individual in his own name (status: known as account in single name) or by more than one individual in their own names (Status: known as joint account). Savings Bank Account can also be opened by a minor jointly with natural guardian or with mother as the guardian (Status: known as Minor’s Account).  Bank may, from time to time design /come out with certain deposit products (with certain additional benefits with or without payment of certain charges) to the depositors of specified age groups only and the same may not be made available to all the customers and to all the schemes across the Board.

    Operation of Joint Account – The Joint Account opened by more than one individual can be operated by single individual or by more than one individual/jointly. The mandate for operating the account can be modified only with the consent of all the joint account holders.

  2. The operation of the account depends on the nature of the mandate given by the depositors. The mandate for operations can be 1. Individually; 2. Jointly; 3. Either or Survivor'/Former or Survivor /Any one or Survivor. If the account is held by two individuals say, A & B, and the operation is on either or survivor basis,  the final balance along with interest, if applicable, will be paid to the survivor, on the death of one of the account holders. b) Any one or Survivor/s: If the account is held by more than two individuals say, A, B and C, the final balance along with interest, if applicable, will be paid to the survivor on death of the remaining account holders. However, the above mandates will be applicable to or become operational only on or after the date of maturity in respect of term deposits. This mandate can be modified by only the consent of all the account holders.
  3. At the request of the depositor, the Bank will register mandate / power of attorney given by him authorizing another person to operate the account on his behalf.
  4. The term deposit account holders at the time of placing their deposits can give instructions in respect of operations, which are included in Application for opening of term deposit account. The customer can opt for auto renewal of the deposit. Irrespective of his option, Customer may demand for payment or give instructions to the contrary on or before the date of maturity of the deposit to renew the deposit either with or without interest, if any due thereon, for similar period at the prevailing rate of interest. However, in respect of Recurring Deposit scheme, change in installment amount originally agreed or the period of the deposit is not permissible.
  5. The Bank will provide either a statement of account or a Pass Book to Savings Bank as well as Current Deposit Account Holders periodically as per terms and conditions of opening of the account. However, in case a customer holds a pass book and still requests for a statement of account and vice versa, the same will not be denied and will be provided on payment of charges as specified by the Bank from time to time.
  6. The deposit accounts may be transferred to any other branch of the Bank at the request of the depositor subject to fulfillment of KYC norms at transferee branch. However, if any deposit scheme is devised with a precondition that it can not be transferred to other places/ branches, the account will continue to be maintained at the branch where it is opened.
  7. Nomination facility : It is available on all deposit accounts opened by the individuals. Nomination is also available to a sole proprietary concern account. Nomination can be made in favour of one individual only. Nomination so made can be cancelled or changed by the account holder/s any time. While making nomination, cancellation or change thereof, it is required to be witnessed by a third party. Nomination can be modified only by the consent of account holder/s. Nomination can be made in favour of a minor also subject to another individual being named as appointee during the period of minority`. Bank recommends that all depositors avail nomination facility. The nominee, in the event of death of the depositor/s, would receive the balance outstanding in the account as a trustee of legal heirs. The depositor will be informed of the advantages of the nomination facility at the time of opening a deposit account.
 Interest payments

  1. Interest shall be paid on Savings Account including (NRE Savings Bank) at the rate specified by Reserve Bank of India directive from time to time, presently at 3.5% p.a.. As Banks are given freedom to price the deposit products, the Bank fixes the interest rates on term deposits including Recurring Deposit taking into account both the internal / external aspects. Based on the rates announced by FEDAI (Foreign Exchange Dealers association of India), Bank announces the rate of interest on NRE/FCNR TERM Deposits The interest shall be calculated at quarterly rests on term deposits. In the case the term deposits are of monthly interest payment nature, the interest shall be calculated for the quarter and paid monthly at discounted value.
  1. The manner of calculation of interest is in accordance with the formulae and conventions as advised by Indian Banks’ Association/RBI from time to time. For the purpose of calculation of interest on domestic term deposits, IBA has prescribed that on 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 at 366 days in a leap year and 365 days in other years. Our bank is adopting the same.

  2. The interest rates are subject to revision from time to time. Whenever interest rates are revised, the revised rates are applicable to fresh deposits as well as renewed deposits only. The interest rates offered are non-discretionary and non-discriminatory and are applicable uniformly to all depositors at all branches of the Bank.                          
  3. The rate of interest on deposits will be prominently displayed in the branch premises and the Bank's website. Changes, if any, with regard to the deposit schemes and other related services shall also be communicated upfront and shall be prominently displayed in Bank's website.
  4. Tax deducted at Source: The Bank has statutory obligation to deduct tax at source if the total interest paid / payable on all term deposits held by a person exceeds the amount specified ,presently Rs.10,000 p.a. ,under the Income Tax Act. The Bank will issue a tax deduction certificate (TDS Certificate) for the amount of tax deducted. The depositor, if entitled to exemption from TDS can submit declaration in the prescribed format at the beginning of every financial year. At the same time if the total interest to be paid to an individual exceeds the threshold limit as specified by I.T. Rules, tax will be deducted at source and no declaration will be accepted, as per IT Rules/Laws.
  5. Deposits maturing on a holiday: In respect of a term deposit maturing for payment on a Sunday or a holiday or a non-business working day, bank would pay interest at the originally contracted rate on the deposit amount for the Sunday/holiday/non-business working day also, intervening between the date of the expiry of the specified term of the deposit and the date of payment of the proceeds of the deposit on the succeeding working day.
  6. Rounding off transactions: All transactions including payment of interest on deposits will be rounded off to the nearest rupee; i.e., fraction of 50 paise and above shall be rounded off to the next higher rupee and fraction of less than 50 paise shall be ignored.
  7. Term Deposits from Resident Senior Citizens:  Senior citizens who have completed 60 years of age, are given certain additional privileges, in tune with the guidelines received from RBI. Proof of age is required for opening senior citizen deposit accounts. Joint accounts with another senior citizen or with a person who is not a senior citizen are permitted. In the latter case, only if the senior citizen is the first named depositor, the privileges are applicable. Deposits are normally accepted for a minimum period of 14 days and for maximum period of 10 years. However, as per the decision taken by the Bank from time to time the deposits for less than 14 days can also be accepted for stipulated minimum amount of deposits. The maximum period of ten years is also relaxed in certain cases. The additional interest rate is payable on deposits of Senior Citizen over and above the normal rates and  informed by Bank from time to time in advance. Presently additional interest rate at 0.5% over and above the card rate is offered to Senior Citizens.
  8. Payment of interest on Savings Deposits: At present interest is calculated on the minimum balance to the credit of the deposit account during the period from the 10th to the last day of each calendar month and credited to the account only when it is Re.1/- or more. With effect from April 1, 2010, bank would calculate the payment of interest on Savings Bank Accounts on a daily product basis, in terms of RBI's directives in this regard.
  9. Payment of interest on accounts frozen by bank: The procedure is detailed below in the case of Term Deposit Accounts of Customers frozen by the orders of the enforcement authorities:
  • A request letter is to be given by the customer for renewal for a term equal to the original term, on maturity.
  • No new receipt will be issued. However, suitable note will be made regarding renewal in the deposit ledger.
  • Renewal of deposit shall be advised by registered letter / speed post / courier service to the concerned Govt. department under advice to the depositor. In the advice to the depositor, the rate of interest at which the deposit is renewed will also be mentioned.
  • If overdue period does not exceed 14 days on the date of receipt of the request letter, renewal shall be done from the date of maturity. If it exceeds 14 days, interest for the overdue period shall be paid as per Bank’s extant guidelines that are referred in this policy.
  • With regard to the savings bank accounts frozen by the enforcement authorities, Bank will continue to credit the interest to the account on a regular basis. However,   withdrawal/debits  can be allowed  only when the accounts  are released  by the    Enforcement  Authorities.
  Accounts of Firms/Companies/Trusts/Associations etc

The above constituents can open deposit accounts ie current,  term deposits by producing necessary documents as specified in the application. All the members of the organization like partners, directors, trustees etc are subject to compliance of KYC norms. Only certain type of institutions are eligible to open Savings accounts.

 Minors’ Accounts

  • A minor can open Savings Bank account / Recurring Deposit account and the same can be operated by the natural guardian or by minor himself / herself, if he / she is above the age of 10 years. The accounts can also be opened jointly.
  • On attaining majority, the erstwhile minor should confirm the balance in his/her account and if the account is operated by the natural guardian/ guardian, fresh specimen signature of erstwhile minor duly verified by the natural guardian would be obtained and kept on record for all operational purposes.
  • Some special schemes under Savings Bank accounts linked with insurance coverage can not be opened in the name of minors below the age groups specified, in tune with the terms and conditions of such special schemes as announced by the bank from time to time.
 Account of Illiterate Persons

A person who cannot read and write is considered as an illiterate person The Bank may at its discretion open deposit accounts (other than Current Accounts) for illiterate persons. Opening of Current Deposit Account in the name of an illiterate person requires prior permission from Zonal authorities. However, since the opening of account requires certain permissions, the same will be delayed and the same will be intimated to the customer. The account of such person may be opened, provided he/she calls on the Bank personally along with a witness who is known to both the depositor and the Bank. Normally, no cheque book facility is provided for such account. At the time of withdrawal/repayment of deposit amount and / or interest, the account holder should affix his/her thumb impression in the presence of the authorized officer who should verify the identity of the person. The bank will explain the need for proper care and safe keeping of the passbook etc. given to the account holder. The Bank official shall explain the terms and conditions governing the account to the illiterate person.

 Account of Visually Impaired Persons

Visually Impaired Persons may be allowed to open all types of deposit accounts, except current accounts, either singly or jointly with other persons, whom they consider reliable. Opening of Current Accounts for visually impaired persons at the branch level requires prior permission from higher authorities and such accounts will be opened after fulfilling the guidelines.

The rules of the deposit scheme in general and the special conditions if any should be read and explained to the visually impaired person in the presence of a witness in view of his physical infirmity. The witness should sign the Personal Data Form and the Account Opening Form duly recording this aspect. To guard against variation in specimen signatures of literate visually impaired person, his specimen signature should be witnessed by a customer known to the bank.

The bank will explain the need for proper care and safe keeping of the passbook etc. given to the account holder. The Bank official shall explain the terms and conditions governing the account to the Visually Impaired Persons.

  Addition or deletion of the name/s of joint account holders

The bank may at the request of all the joint account holders allow addition or deletion of name/s of joint account holder/s if the circumstances so warrant or allow an individual depositor to add the name of another person as a joint account holder. However, the name of the first joint holder can not be replaced.

 Customer information

The information collected from the customers shall not be used for cross selling of services or products by the Bank, their subsidiaries and affiliates. If the Bank proposes to use such information, it will be strictly with the consent of the account holder. Bank should prepare a profile for each customer based on risk categorization. This profile contains the information relating to customer's identity, social/financial status, nature of business activity, information about his clients' business and their location etc. The customer profile is a confidential document and details contained therein will not be divulged for cross selling or for any other purposes.

 Secrecy of Customer’s Accounts

The Bank shall not disclose details / particulars of the customer’s account to a third person or party without the express or implied consent from the customer. However, there are some exceptions, viz. disclosure of information when the interest of our Nation is at stake and compulsion of law, where there is a duty to public to disclose and where interest of the Bank requires disclosure.

 Premature withdrawal of Term Deposit

The Bank on request from the depositor, at its discretion may allow withdrawal of term deposit before completion of the period of the deposit agreed upon at the time of placing the deposit.

The Bank shall declare its policy on penalty which will be levied by way of interest reduction for premature withdrawal of term deposit. The Bank shall make depositors aware of the applicable rate along with the deposit rate. The penalty of 1% at present is levied on premature cancellation of Term Deposits. However, at present , the following cases are exempted from levying penalty:

1) Deposits of Individuals up to Rs.1 lakh contracted for any maturity

2) Deposits of Corporate depositors i.e., Corporations, Govt. undertakings,
    bodies, firms, institutions, associations etc—Up to Rs.100 lakhs
    contracted up to 90 days.

 Premature renewal of Term Deposit

In case the depositor desires to renew the deposit by seeking premature closure of an existing term deposit account, the bank will permit the renewal at the applicable rate on the date of renewal, provided the deposit is renewed for a period longer than the balance period of the original deposit. While prematurely closing a deposit for the purpose of renewal, interest on the deposit for the period it has remained with the bank will be paid at the rate applicable to the period for which the deposit remained with the bank reckoning from the date of deposit and not at the contracted rate.

 Renewal of Overdue Term Deposits

When a term deposit is renewed on maturity, on renewed deposit, interest rate for the period specified by the depositor as applicable on the date of maturity/ date of renewal would be applied. If request for renewal is received after the date of maturity, such overdue deposits will be renewed with effect from the date of maturity at interest rate applicable as on the due date, provided such request is received within 14 days from the date of maturity. In respect of overdue deposits renewed after 14 days from the date of maturity, interest for the overdue period will be paid at the rates decided by the Bank from time to time.

 Advances against Deposits

The Bank may consider request of the depositor/s for loan / overdraft facility against term deposits on submission of the deposit receipt duly discharged by the depositor/s and on execution of necessary security documents.

The Bank may also consider loan against deposit standing in the name of minor. However, a suitable declaration stating that loan is for the benefit of the minor, is to be furnished by the depositor – applicant. Similarly loans are permitted against third party deposits.

Whenever a loan is granted, a lien on the deposit is marked and bank shall have the right to appropriate the deposit proceeds to the loan account on the date of maturity, in case the loan remains unpaid.  The interest rates applicable, margins to be maintained etc. will be made known to the customers at the time of availment of Deposit Loan and also will be placed in Bank's website from time to time.

 Settlement of dues in deceased deposit account

  • If the depositor has registered nomination with the Bank, the balance outstanding in the account of the deceased depositor will be transferred to the account of / paid to the nominee after the Bank is satisfied about the identity of the nominee, etc.
  • The above procedure will be followed even in respect of a joint account where nomination is registered with Bank.
  • In a joint deposit account, when one of the joint account holders expires, the Bank is required to make payment to the legal heirs of the deceased person and the surviving depositor (s) jointly. However, if the joint account holders had given mandate for disposal of the balance in the account in the forms such as “either or survivor, former / latter or survivor, anyone of survivors or survivor; etc., the payment will be made as per the mandate to avoid delays on production of supporting documents by the legal heirs of the deceased.
  • In the absence of nomination and when there are no disputes among the claimants, the Bank will pay the amount outstanding in the account of deceased person against joint application and indemnity by all legal heirs or the person mandated by the legal heirs to receive the payment on their behalf without insisting on legal documents up to the limit approved by the bank’s board. This is to ensure that the depositors are not put to hardship on account of delays in completing legal formalities.
 Interest payable on term deposit in deceased account

  1. In the event of death of the depositor before the date of maturity of deposit and amount of the deposit is claimed after the date of maturity, the Bank shall pay interest at the contracted rate till the date of maturity. Again from the date of maturity to the date of payment, the Bank shall pay simple interest at the applicable rate prevailing on the date of maturity, for the period for which the deposit remained with the Bank beyond the date of maturity, as per the Bank’s policy in this regard.
  2. However, in the case of death of the depositor after the date of maturity of the deposit, the bank shall pay interest at savings bank rate operative on the date of maturity i.e., at present 3.5% p.a.  from the date of maturity till the date of payment.
  3. In the case of balances lying in current account standing in the name of a deceased individual depositor/sole proprietorship concern, interest shall be paid only from 1st May, 1983, or from the date of death of the depositor, whichever is later, till the date of repayment to the claimant/s at the rate of interest applicable to savings deposit as on the date of payment.

Note: In the case of a NRE deposit, when the claimants are residents, the deposit on maturity shall be treated as a domestic rupee deposit and interest will be paid for the subsequent period at the rate applicable to the domestic deposit of similar maturity.

 Insurance Cover for Deposits

All bank deposits are covered under the insurance scheme offered by Deposit Insurance and Credit Guarantee Corporation of India (DICGC) subject to certain limits and conditions. The insurance premium is being paid by the Bank at present. The details of the insurance cover in force will be made available to the depositor.

 Restrictions for payment of Term deposits on maturity by cash

Section 269 T of Income Tax Act, 1961 prohibits repayment of term deposits or notice deposits in cash if the amount involved, principal plus interest  is Rs.20,000/- or more. Hence, the payment of such deposits is to be made by way of credit to the  account of the party (or) by way of A/c Payee crossed demand draft or pay order, when,

      • the amount of the deposit together with interest, if any, payable thereon, or
      • the aggregate amount of the deposits held by such person with the branch of the Bank in his own name or jointly with any other person, on the date of such repayment, together with interest, if any, payable on such deposits, is twenty thousand rupees or more.
 No Frills Accounts

Bank offers basic banking facility of 'No-frills' account for low-income individuals, with either zero or low minimum balances and charges.  The nature and number of transactions in such accounts would be limited, the details of which would be made known to customers from time to time in advance.

These accounts also will be subjected to compliance with limited KYC norms as applicable to "No Frills Accounts".

  Facility of ECS clearing

It is a mode of Electronic Funds transfer from one Bank account to another bank account using the services of a Clearing House. Normally bulk transfers take place from one account to many accounts or vice-versa under this facility.  This facility is available at limited centers only, as made available in the web-site of RBI.  Bank provides the facility on merits of the case duly observing the KYC norms, at these identified centers. 

  ATM/Debit Card

ATM/Debit card, will be issued to  a Account holder  based on his request.  ATM Card is used for withdrawal of cash from Automated Teller Machines. Debit Card is a payment card used to with draw  cash  from ATM, purchase of  goods and payment for services automatically debiting to the card holder's bank account instantly, to the extent the credit balance exists.  In ATM/Debit card the limit of the card holder will be amount of funds available in his account. While providing ATM/Debit card, a customer is provided a PIN number to facilitate withdrawal of amount. Debits to the account using ATM/Debit Card through  PIN Number are treated as mandate for withdrawal of the cash by the customer from the account.

  Internet Banking

Internet Banking is provided to Individual/Joint /Sole proprietary concerns, Corporate etc. at their request. The terms and conditions governing Internet banking are displayed on the Bank's website. These terms and conditions are supplementary to and not independent of the terms and conditions governing the type of account the customer maintains with the Bank. Any change in the terms and conditions of "Internet Banking" will be displayed on the website only and not by any means of communication directly to the user of internet banking. The opening and maintenance of the account is subject to rules and regulations introduced or amended from time to time by Reserve Bank of India.

Bank can, at its sole discretion, withdraw any of the services / facilities given for the account either wholly or partially at any time without giving any notice.

In respect of debits to the accounts by an NRI for the purpose of investment in India and Credits representing sale proceeds of investments, user has to ensure that such investments or disinvestments would be covered either by the general or special permission of RBI.  Further the debits and credits to the accounts shall not be for the purposes prohibited by RBI.

 Facility of opening Pension accounts

Pension Accounts are opened on receipt of advice from pension disbursing authorities with all the relevant documents sent to the Bank at identified places / branches. Payment of pension will be made as directed by the pension disbursing authority. The terms and conditions for opening of accounts in the name of pensioners are available at these selected branches of the Bank. The other terms and conditions will be informed by the Bank from time to time.

 Stop Payment Facility

The Bank will accept stop payment instruction from the depositors in respect of cheques issued by them. Charges, as specified, will be recovered.

 Dormant Accounts

A saving as well as current account shall be treated as inoperative / dormant if there are no transactions in the account for over a period of two years and  will be transferred to a separate dormant / inoperative account status in the interest of the depositor as well as the Bank. The depositor will be informed of charges, if any, which the Bank will levy on dormant / inoperative accounts. The depositor can request the Bank to activate the account for operating it. If  a  fixed Deposit matures  and proceeds are unpaid, the amount left unclaimed with the bank will attract Savings Bank Rate of Interest. Bank will pay interest at Savings Bank Rate (presently 3.5% p.a.) on maturity  proceeds of  term deposits  withdrawn (without being renewed)   after the  due  date by the  depositors. 

 Information to depositors

Bank's policy relating to opening and maintenance of deposit accounts and the various charges on such accounts and the revisions in such policy and the charges, will be informed to the depositors in the following manner.

  • The terms and conditions for opening a deposit account and the charges that will be levied on the account will be provided to the customer at the time of opening of the account. The charges that are levied are vary depending on the type of Customer (s) e.g., Sr. citizen, individuals etc. Customers will be informed about the terms and conditions, revised charges etc from time to time.
  • In case of any revision, the revised policy/requirements and revised charges will be displayed prominently in branches.
  • Additionally, depositors will be informed about the revised policy/requirement/ charges either through press releases or advertisement in print media and or by displaying in Bank's web site www.andhrabank.in

All interest rates on Domestic and Non Resident Deposits are displayed  prominently at branches and also Bank's website www.andhrabank.in.

  Standing Instructions

Standing instructions can be given to the Bank for transfer/remittance of funds from one account to other account(s) maintained in the same branch, or any other branch of the bank or any other bank or any other third party. Applicable charges will be levied by the bank for rendering the said services. Revision in service charges, if any, will be communicated one month in advance to all customers before effecting the revision, through Bank's website.

  Redressal of complaints and grievances

Depositors having any complaint / grievance with regard to services rendered by the Bank have a right to approach authority/ies designated by the Bank for handling customer complaint / grievances. The details of the internal set up for redressal of complaints / grievances will be displayed in the branch premises. The branch officials shall provide all required information regarding procedure for lodging the complaint. In case the depositor does not get response from the Bank within one month from the date of complaint or he is not satisfied with the response received from the Bank, he has a right to approach Banking Ombudsman appointed by the Reserve Bank of India.

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News & Events

As per RBI guidelines w.e.f.,01-November-2014 the number of free ATM transactions (inclusive of both financial and non-financial transactions) for savings bank account customers at other bank’s ATMs is reduced from the present five to THREE transactions per month for transactions carried out at the ATMs located in six metro centers viz., Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad. However the free transactions (inclusive of both financial and non-financial transactions) carried out in other Bank ATMs at the six metro centers and other locations together, would continue to remain at FIVE.

Waiver of processing charges in Housing Loans, Car Loans, Two wheeler loans, Consumer durables, Clean Loans for the festive season from 25.09.2014 to 31.12.2014

The existing customer grievance redressal mechanism would also cover the complaints relating to outsourcing

Use your Visa Debit Card for shopping in POS/Online within 3 months of card issuance & get 5% Cash back. Offer applicable to cards issued after December 2013,T&C Apply


You can now donate to Shri Saibaba Sansthan Trust, Shirdi through IMPS-Mobile Banking.

Presentation to Analysts

Our Total Income during 12M of FY’12-13 increased to Rs. 13,957 Crore, recording a growth of 14.4%.

Form 15G/15H has to be submitted afresh at the beginning of each financial year to avail exemption/concession in TDS. Quoting of PAN is mandatory for availing such exemptions/concessions.

All our Banks’ cheques are “payable at par henceforth. We request all our customers to surrender their old cheque books at their account branch and obtain CTS 2010 Standard Cheque books immediately.

We request all our customers who have issued postdated cheques for repayment of loan installments for loans availed by them to replace the old PDCs with new CTS 2010 Standard cheques.

Online Grievance Redressal System with Tracking

Online Applications for MSME and Retail Loans

Online Donations to charitable institutions through net banking

Online resetting of Internet Banking Login Password

Interbank transfer of Funds through Mobile Banking using IFSC code

As per RBI mandate, cash retraction facility is discontinued from our ATMs. Do not forget to collect cash before leaving ATM room.

Any customer could walk in to deposit money in any branch of the bank if the account is in any other branch of the bank to which he wants to deposit the money and there will be no charges on this for any amount

Fictitious Offers of Cheap funds from abroad - Awareness Campaign - List of Nodal Agency (Cyber Crime Cell / Economic Offence Wing)

Complain to Local Police/Cyber Crime Authorities against Fictitious Offers of Money from Abroad

PPF and SCSS schemes

Do Not fall Prey to Fictitious Offers of Funds Transfer

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