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
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.