Recurring Deposits


  • Account can be opened for minimum 1 year and maximum upto 10 years.
  • Quarterly Compounding Interest payable on maturity.
  • Minimum amount Rs. 100/- per month and maximum no limit .
  • Pledging of security allowed.
  • Prepayment penalty of 1% p.a. considering the period completed.
  • Nomination facility available.
  • Additional interest for senior citizens.


Any individual, Proprietory concern, partnership firm, limited company, HUF, AOP, LLP , Body of individuals, local authority, Trust can open recurring deposit accounts.
Terms and Conditions of Recurring Deposit

  • Minimum monthly deposits of Rs.100 with no maximum limit.
  • Minimum period of deposit is 12 months and maximum is 60 months.
  • Loan / Overdraft against the balance in RD account available.
  • TDS is applicable.
  • Premature withdrawal is allowed with a penalty of 1.00% below the interest
          rate applicable for the period the deposit has remained with the bank.
  • If the scheduled payment of installments is delayed, the maturity amount shall vary, as it
          will be subject to penal charges.
  • Penalty charges for not depositing monthly installments on time are Rs. 1.50 per
          Rs. 100/- per month.
  • Passbooks will be issued.
  • Nomination facility is available for accounts in the name of individuals.
  • Once the installment amount has been fixed, it cannot be altered.
  • In case there are more than two months of installments overdue, and you pay enough to
          cover just one installment, it will be directed towards the first/earliest month of overdue.
  • Payment of a single installment cannot be divided in parts.
  • Interest on RD is paid only on maturity of the same.
  • Irrespective of overdue installments, an RD will mature and shall be due for repayment
          on the completion of the stipulated tenure.
  • In case of frequent failure to pay the monthly installments, the bank has every right to
          close the RD account.
  • No separate intimation about maturity of RD will be sent.
  • No contracted rate of interest is paid after maturity of RD.
  • Bank reserves right to add/modify/cancel any of rules.

Open an account


Interest Rate

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TDS will be deducted as per applicable Income Tax rule. At per the prevailing rule, TDS will be deducted if the aggregate of interest exceeds Rs.10000, unless Form 15G/ Form 15 H is submitted at the beginning of each financial year.