1. Background:

It was indicated in the Mid-Term Review of Monetary and Credit Policy for 2003-04 (on 03.11.2003) that the Reserve Bank of India would set up a Committee on Procedure and Performance Audit in order to Benchmark the current level of its services rendered to the Public . Accordingly, the RBI has set up a committee on Procedures and Performance Audit on Public Services under the Chairmanship of Dr.S.S.Tarapore, Chairman, and DFHL Ltd. Other members of the Committee are Shri. M.G.Bhide, Director, CRISIL, Shri H.N.Sinor, Chief Executive, IBA, Shri C.B.Bhave, M.D.-NSDL and Shri M.M.Chitale ( C.A.)
Report No.3 of the Committee was related to Banking Operations: Deposit Accounts and Other Facilities relating to individuals (Non-Business). The Committee felt that entire regulatory framework is virtually irrelevant for the mass of depositors. There is a vacuum when it comes to providing authentic information to the depositors.
With this background, the Bank decided to formulate a transparent and comprehensive policy setting out the rights of depositors covering all aspects of the operations of the deposit accounts.

2. Preamble

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 stakeholder 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 formulate deposit products within the broad guidelines issued by RBI.

This policy document on deposit 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 the 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 deposit 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 the customers. It is expected that this document will impart greater transparency in dealing with the individual customers and create awareness among 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 Bank's Association. This document is a broad framework under which the rights of common depositors are recognized. The instructions contained in this document are as on July 31, 2004. Any change in operational instructions on various deposit scheme and related services will be issued from time to time.

3. Types of deposit accounts

01. A depositor can have the following types of the account with the Bank:-

i. Current Deposit Account with or without overdraft facility.
ii. Saving Bank Account
iii. Fixed Deposit Account

02. The Bank before opening any deposit account will carry out due diligence as required under 'Know Your Customer' guidelines issued by RBI and or such other norms or procedures adopted by the Bank. 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 him and the final decision of the Bank will be conveyed at the earliest to him.

03. The due diligence process, while opening a deposit account will involve satisfying about the identity of the person, verification of address, satisfying about his occupation and source of income. Obtaining introduction of the prospective depositors from a person acceptable to the Bank and obtaining recent photographs of the person/s opening / operating the account are part of due diligence process.

i. Current Deposit Account with or without overdraft facility.

1. Current Accounts can be opened by individuals, partnership firms. Private and public limited companies, HUFs/ specified Associates, Societies, trust, etc.

2. Before opening an account, the Bank would like to satisfy itself about the identity of the person/s desiring to open an account including verification of address. This will help in protecting the prospective customers, members of public and the Banks against frauds and likely misuse of the Banking system by any unscrupulous elements.

3. The Bank requires a satisfactory introduction of the person/s opening the account, as per R.B.I. directives.

4.The Bank is required to obtain Permanent Account Number(PAN) or General Index Register (GIR) Number or altermatively obtain declaration in Form No.60 or 61 as per the Income Tax Act ( vide section 139 A) from the person/s opening the account ( i.e. including partners of Registered/Un-registered partnership as also Registered/Incorporated bodies/companies).

5. The Bank will provide to the prospective customers details of the documents required for identification of the person/s opening the account in addition to a satisfactory introduction. Documents normally accepted are the current telephone/electricity bill or voter's identity card or driving license or passport etc.

6. Minimum balance stipulated from time to time will be required to be maintained.

7. No interest is paid on credit balances kept in current account.

8. The Bank will debit following charges in the current account:-

8.1 Ledger Folio Charges.
Rs.40 per ledger page containing 40 computer entries with minimum of Rs.40 per annum.
Current account maintaining good credit balance are given following exempt ion:-

Average Credit Balance	Free Folio
1.Up to Rs.25000/-	Nil
2.Above Rs.25000- up to Rs.50000/-	3
3.Above Rs.50000 to Rs.1 lacs	5
4.Above Rs.1 lacs to Rs.2 lacs	10
5.Above Rs.2 lacs	No folio charges

The charges will be recovered either at the time of closure of the account or during the month of March every year.
8.2. Cheque -Book Charges:-

Rs.1/- per leaf of MICR cheque book

8.3. Stop Payment instructions:-

Per instrument Rs.10/-

8.4. Duplicate Statement

Rs.10/- per ledger page or part thereof. For account maintained on computer 40 entries or part thereof be treated as one ledger page.

8.5. Non maintenance of minimum balance.

In addition to the levy of ledger folio charges, a charge of Rs.15/- on each occasion will be recovered when the balance falls below the minimum stipulated balance.

8.6. Return of Cheques sent in clearing or collection.

When the cheque is returned due to insufficient fund, a charge of Rs. 10/- will be recovered from the account for every instrument returned in clearing.

ii. Saving Bank Deposit Accounts.

1. These accounts are designed to help the individuals (depositors under personal segment) to inculcate habit of saving money to meet their future requirement. The amounts can be deposited/withdrawn from these accounts by way of cheques/withdrawal slips. It helps customers to keep minimum cash at home besides earning interest. Savings bank accounts are very popular. These accounts can be opened by eligible person/s and certain organization/agencies (as approved by the RBI.)

2. Before opening an account, the Bank would like to satisfy itself about the identity of the person/s desiring to open the account including verification of address. This will help in protecting the prospective customers, members of the public and the Bank against frauds and likely misuse of the Banking system by any unscrupulous elements. The details required for opening a Savings Bank Account are same as given in the point No.3, 4, 5 in the Current account section above.

3. Who can open the account:-
a) A person in his/her own name.
b) By two or more persons in their joint names and account to be operated as under:-
i. both or all of them or the survivors or survivors of them; or
ii. either or any one of them or more of them or the survivors or survivors of them; or
iii. former/latter or survivor or a particular person during his life time or survivors jointly or survivors.
c) Account may be opened in the name s of illiterate or blind persons or in the names of, or on behalf of minors either singly or jointly. The special provision applicable to such account should be ascertained from the Bank
d) Accounts may in approved cases be opened in the names of associations, clubs, regimental funds of military units, or similar other non-trading institutions for purpose of depositing savings, provided the relevant bye-laws, rules etc. are found acceptable to the Bank.

4. The account holder is required to maintain certain minimum balance in the account, as specified by the Bank from time to time. The amount may vary depending on, whether account holder wants to avail the cheque book facility or not. Non-compliance of this would attract service charges. Which is as under:-

4.1 TYPE OF ACCOUNTS:-

i. Cheque operated accounts:
A minimum balance of Rs.250/- will be maintained in the account.

Ii .Non- Cheque operated account:-
A minimum balance of Rs.100 will be maintained in the account.

However, revised minimum balance is not applicable to Pension savings Bank accounts, Savings Bank Accounts opened by individuals for salary purpose, Staff Saving Bank Accounts.

5.Interest @ 3.50% p.a. is presently paid on half yearly basis depending on minimum balance between the 10th day and last day of the months, provided it works out to minimum Rs.1/-. The current rate of interest allowed on deposits in Savings Bank Accounts can be ascertained at the Bank. Any change in the rate, which are governed by the directive of the RBI, is notified through advertisement in the newspapers.

6. HOW TO OPEN AN ACCOUNT:

6.1The applicant will be furnished with a copy of rules and will be required to sign the prescribed form of application to be filled in and the appropriate declaration(s) thereof in respect of accounts in joint names completed by him. The application should be presented at the Bank with an initial deposit.
The applicant should attend the Bank personally for completion of the formalities for opening the account.

6.2 Every depositor will be required to furnish to the Bank a specimen of his signature for record. The signature must be legible and well formed. All withdrawals, cheques and letters to the Bank in connection with the account must be signed strictly in accordance with such specimen.

6.3 Each account is given a distinctive number which will be mentioned in the pass-book supplied to the account holder. This number must be invariably quoted in all pay-in slips/cheques/withdrawals and correspondence with the Bank.

7. PASS-BOOK

7.1 The Bank undertake to issue a pass-book for the account opened. The pass-book must be presented for withdrawal other than by cheques. Deposits may be made without production of pass-book, but the pass book should be sent to the bank for completion as soon as possible. When pass-book is returned duly completed, the depositor should examine the entries carefully and draw the Bank's attention to any error or omission that might be discovered.

7.2 Pass-book should, as far as possible, be collected from the Bank by the account holder immediately or same day. However if due to any contingency the pass-book is required to be retained overnight the Branch will issue a receipt in the form of a paper token. The pass-book should be collected against this token with in a week otherwise the same will be delivered to the depositor by registered A.D. post at his cost.

7.3 Depositors are advised to keep their pass-books in a safe place. The Bank will not be responsible for any loss or incorrect payment attributable to the neglect of this rule. Any change in the address of the depositor should be immediately intimated to the Bank.
7.4 The depositor will be charged ten rupees for issue of duplicate pass-book.

8. MODE OF DEPOSITING MONEY:

8.1 A depositor may deposit money as often as he wishes. The amount should be deposited along with pay-in-slip duly completed when the counterfoil of the pay-in-slip will be returned to the tenderer duly receipted.

9. MODE OF WITDRAWING MONEY OTHER THAN CHEQUE:

9.1 When a depositor wishes to withdraw money, other than by cheque book, he should present his pass-book personally along with a withdrawal form prescribed by the Bank duly completed.

9.2 Payment of Savings Bank withdrawal forms to third parties even if they are accompanied by pass books is not permitted. However certain relaxations have been allowed for the Savings Bank Accounts of pensioners/old/sick/incapacitated customers who can not come to Bank personally to withdraw money.

10. WITHDRAWAL BY CHEQUE

10.1 In the case of cheque book operated accounts, withdrawals are allowed in the cheque forms supplied by the Bank. The Bank reserves its right to refuse payment of any cheque drawn otherwise. Cheque books will normally be issued to a depositor against an application signed by him on the Bank's requisition slip from the cheque book in his use.

10.2 At a notified MICR centres, three cheque books containing 20 leaves each will be supplied to Savings Bank account holder free of charge in a calendar year. For additional cheque books at such notified centre, charge will be levied by the Bank as prescribed from time to time.

10.3 The Bank is at liberty to refuse payment of cheques that have been altered in any way unless the alteration is authenticated by the drawer under his signature. Cheque should be drawn in such a way as to prevent alteration after issue and the drawer's signature should be uniform with that record at the Bank.

11. LIMITATIONS ON DEPOSIT AND WITHDRAWALS

11.1 The savings bank Accounts may not be used like Current Accounts The smallest sum that can be accepted at the time of opening a Savings Bank Account is Rs.100/- for non-cheque book accounts and Rs.250 /-for account with cheque book facility. And thereafter no deposit for less than Rs.10/- will be accepted. A saving Bank account, the balance in which falls below the sum stipulated under the rules may be closed at the Bank's discretion after giving 15 days registered notice to the customer at the last known address. A charge of Rs.5/- (without cheque book) and Rs.10/- (with cheque book facility) on each occasion will be levied when the balance falls below the stipulate minimum balance.

11.2 Cheques, drafts, dividends warrants and other instruments drawn in favour of the depositor will be accepted for credit of introduced accounts. The Bank will give instant credit for the instruments up to Rs.15000/-. Third party instruments endorsed to the depositors will not be collected on behalf of the Savings Bank Account holder.

11.3 A Saving Bank Account holder will not be permitted more than 50 debits on his account in a half year. The Bank will recover a charge of Rs.5/- per debit for exceeding stipulated 50 debits in a half year.

11.4 A depositor cannot withdraw a sum less than ten rupees, nor any sum which is not in multiple of Rs.5/-- unless the account is to be closed in which case entire balance at credit of the account will be withdrawn.

12.In addition to the charges prescribed in these rules, the under noted service charges will be levied on Savings Bank Accounts which are closed within the period of 12 months and accounts which remain in-operative for one year or more.

1	If the balance in the concerned inoperative S.B. account is more than Rs.100/-	No charge will be levied
2	If the balance in the account is below Rs.100/- but more than Rs.20/- and no deposit /withdrawals have been made in the account during the year.	A fee of Rs.20/- per year will be levied on such inoperative accounts.
3	If the balance in the account is less than Rs.20/- and the account remains inoperative for one calendar year.	The account will be closed and balance if less than Rs.20/- will be appropriated.
4	If a Savings bank account is opened and closed within the period less than one year	Rs.50/- will be levied towards service charges in such account.

13. TRANSFER OF ACCOUNT

13.1 Accounts may be transferred to any other branch of the Bank free of charges. Should the depositor wish to transfer his account, he should make a written application for the transfer to the branch where he maintains his account and send it along with his pass book and unused cheque leaves either to that branch or to the branch to which he wishes his account to be transferred.

14. Nomination facility is available for deposit accounts held in single or joint names

15. CLOSING OF AN ACCOUNT

A depositor wishing to close his account should present his pass book in order that amount of interest due on the account may be entered therein and the final balance struck. The amount will be then paid to the depositor and cancelled but completed pass book will be returned to him for his record. The unused cheque forms if any, in his possession should also be returned to the Bank.

16. The Bank maintains strict secrecy with regards to every account and as such, account holder should either obtain information pertaining to their accounts personally or through their accredited representative only.

17. FORCED CLOSURE OF ACCOUNTS

The Bank reserve its right to take steps to get the account closed if frequent return of cheques for want of funds is observed.

18. The Bank also reserves the right to alter, delete or add to any of these rules at any time.

19.The Bank will register instructions from drawer regarding cheque lost, stolen etc. but cannot guarantee depositors against loss in such cases in the event of such cheques being paid. Charges for stop payment instructions will be Rs. 10/- per instrument.

18. CHEQUE BOOK FACILITY TO VISUALLY HANDICAPPED PERSONS.

The branches of the Bank will open a deposit account in the name of visually handicapped persons operable singly or jointly with others or in the name of sole proprietorship concerns/firms/partnerships where a visually handicapped person is/ are involved. The blind persons may operate the account singly ( i.e. through Power of attorney) or jointly with any other person. The Power of Attorney should be duly notarized or attested by a magistrate.

iii. Term Deposit Accounts

1. Bank has tailored various deposit schemes to suit the needs and expectation of investing people in every walk of life. A 'Term Deposit' means a deposit received by the Bank for a fixed period and which is withdrawal only after the expiry of the said fixed period and shall include deposit such as Recurring/Cumulative/Annuity/Reinvestment deposits and so on.

2. No term Deposit can normally be accepted for a period exceeding 10 years. However, banks may accept deposits for period exceeding 10 years in terms of competent courts or in the case of minors where interests where interests of minor are involved, provided banks are convinced that it is necessary to do so.

3. The Bank will issue a Fixed Deposit Receipt indicating therein full details, such as, name of depositor/s date of issue, period of deposit, due date, applicable rate of interest, maturity value and periodical rests at which interest is payable, etc.

4. Term Deposit account can be opened by individuals, partnership firms, private and public limited companies, HUFs etc.

5. Before opening an account, the Bank would like to satisfy itself about the identity of the person/s desiring to open an account including verification of address. This will help in protecting the prospective customers, members of public and the Bank against frauds and likely misuse of the Banking system by any unscrupulous elements. For the purpose the Bank will require completion of all the account formalities as stated in the para 3 to 5 in the current account section above.

6.1 Premature withdrawals are mandatory if requested by the depositors. However the banks are free to prescribe penal rates for allowing the same. The RBI has, decided to give freedom to banks to exercise their discretion to disallow premature withdrawal of large deposits held by entities other than individuals and Hindu Undivided Families. The Bank will however notify such depositors of its policy of disallowing premature withdrawals in advance i.e. at the time of accepting such deposits.

6.2 Extant instructions for payment of interest on premature payment of fixed deposit are as under:-

1. For deposits prematurely withdrawn before 14 days, no interest will be paid.

2. For Term Deposit older than 15 days or more and if the amount of deposit is less than Rs.100000/- rate applicable for the period for which the deposit has run will be applied. For deposit above Rs.1 lac, the interest will be paid at the rate 1% below the rate of interest applicable for that period.

7. PAYMENT OF OVERDUE INTEREST

7.1 Present policy stipulates that if the Term Deposit is renewed within 14 days and the entire amount is renewed, the Deposit will be renewed at the rate prevailing on the maturity date.

7.2 If the overdue period exceeds 14 days, interest on the amount so placed as fresh deposit shall be paid for the overdue period at the applicable rate slab for the period it remained overdue at the rates prevailing on the maturity date or on the date of payment, whichever is less. The deposit shall be renewed from the date of actual payment at the rates prevalent on the date of such renewal.

8. Generally loans/overdrafts against deposit are allowed as a matter of routine. Such loans are sanctioned by charging interest prescribed by the Bank from time to time.

9. The Deposits are renewed by the Bank on due dates on request. As a measure of good customer service, the Bank may intimate the depositor in advance regarding date of maturity.

10. Interest on deposits is payable either monthly at discounted value or quarterly or compounded quarterly (i.e reinvestment of interest) or on the date of maturity at the option of depositor as applicable under particular deposit scheme.

11. Interest on overdue deposit is paid if the deposit is renewed, as described by the Bank from time to time.

12. Interest on bank deposits is exempt from income tax up to a limit specified by the Income Tax authorities from time to time. Presently, if the total interest on deposit , per depositor, per branch, per financial year exceeds Rs.5000/-, the same is subject to Tax Deduction at Source ( TDS) at the rate stipulated by the Income Tax Authority. In this connection following provisions will apply:-

12.1 The depositor may furnish declaration in Form No. 15 G/H (as the case may be) preferably at the commencement of the financial year for receiving interest on deposits without deductions of Tax... However, extant instructions do not allow this declaration to be filed if the interest accrued or earned in an financial year is above Rs.50000/-

12.2 Or the Bank will issue TDS certificate for the tax so deducted.

iv. GENERAL

1. Additions or Deletions of the Name/s of Joint Account Holder.

1.1The bank at the request of all the joint account holders allow the addition or deletion of name/s of joint account holder/s if the circumstances so warrant or the Bank may allow an individual depositors to add the names of another person as joint account holder. However in no case should the amount or duration of the original deposit undergo a change in any manner in case the deposit is a term deposit.

2 Payment of Balance in Accounts of the Deceased Customers to Survivors/Claiments

2.1 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 satisfies about the identity of the nominee etc.

2.2 The above procedure will be followed even in respect of a joint account where nomination is registered with the bank.

2.3 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 applications and indemnity by all legal heirs or the persons mandated by the legal heirs to receive the payment on their behalf without insisting on legal documents .This is to ensure that the common depositors are not put to hardship on account of delays in completing legal formalities. As directed by the RBI, the Bank may not insist on succession certificate from legal heirs irrespective of amount involved. However, the Bank will adopt such safeguards in considering settling of claims as it may consider appropriate including accepting an indemnity bond.

2.4 In case of Fixed Deposits, the interest will be paid in case of deceased constituent as under:-
i. at the contracted rate on the maturity of deposit.
ii. In the event of payment being claimed before maturity date, the Bank will pay interest as applicable for the period of the Fixed Deposit on the date of issue without charging the penalty indicated therein.
iii. However, in the case of death of the depositor after the date of maturity of the deposit, the bank shall pay interest at saving deposit rate obtaining on the date of maturity to till the date of payment.

3. Rounding off of the transaction

3.1 All transactions including payment of interest on deposit /charging of interest on advances should 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. However cheques issued by the clients containing fraction of a rupee should not be rejected.

4. Standing Instructions

4.1 Standing Instructions for payment of insurance premia, club membership, loan installment, Recurring Deposit installment etc. will be accepted in all Saving Bank accounts. The Bank will chargeRs.5/- per transaction involving credit to another account within the same branch towards standing instruction. If the transaction involves an upcountry centre, remittance charges at the prescribed rate and the actual postage shall be recovered additionally. Charges will be debited to the account from which the amount is debited.

5. Nomination facility

5.1 Nomination facility is available
for all deposit accounts. Nomination is available for all accounts opened in individual capacity (i.e. single/joint accounts as well accounts of a sole proprietary concern) only, i.e. not for accounts opened in representative capacity. Nomination can be done in favour one person only. Nomination can be made, cancelled, or varied by the account holders any time during his/her life time. While making nomination, cancellation or variation, witness is required and all other account holders should sign request. Nomination can be made in favour of minor also. For the existing accounts where nomination is not made, the account holder/s can do so by filling up form available with the branches.
5.2 All customers (new or old) are advised to avail nomination facility, if they have not availed so far.
6. 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. At present this cover is up to Rs.1.00 lac per depositor.

7. Dormant Accounts

Accounts which are not operated for are a period of six month are marked dormant accounts and if they remain non operated for a period of one year they are classified as inoperative account. A charge of Rs.20 per annum will be recovered if the inoperative account has balance less than Rs.100/-.

8. Power of attorney

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.

9. Secrecy of Customer's Account

9.1 The bank shall not disclose details/ particulars of the customer's account to a third person or party without the expressed or implied consent from the customer. However, there are some exceptions, viz. disclosure of information under compulsion of law, where there is a duty to public to disclose and where interest of the Bank requires disclosure.
9.2 The customer 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 should be strictly with the consent of the account holder.

10. Safe Deposit Lockers

This facility is not offered through all branches of the Bank and wherever the facility is offered, allotment of safe deposit vault will be subject to availability and compliance with other terms and conditions attached to the service. Safe Deposit lockers may be hired by an individual (being not a minor) singly or jointly with other individual(s), HUFs, firms, limited companies, associates, societies, trusts etc. Nomination facility is available to individual(s) holding the lockers singly or jointly. In respect of lockers held in joint names, up to two nominees can be appointed. Joint locker holders can give mandate for access to the lockers in the event of death of one of the holders on the lines similar to those for deposit accounts. In the absence of nomination or mandate for disposal of contents of lockers, with a view to avoid hardship to common persons, the Bank will release the contents of locker to the legal heirs against indemnity on the lines as applicable to deposit accounts.

9. Redressal of complaints and grievances

Depositors having any complaint/ grievance with regard to services rendered by the Bank has a right to approach authority(ies) designated by the Bank for handling customer complaints/ 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 60 days from the date of complaint or he is not satisfied with the response received from the Bank, he has right to approach Banking Ombudsman appointed by the Reserve bank of India and his address is displayed at the branch premises/notice board.

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