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SB & CD Rules

Savings Bank Account Rules

1. Opening and Operation of Accounts:
    1. An account may be opened in the name of one person or jointly in the names of two or more persons.
    2. All Savings Bank Accounts irrespective of their mode of operations must comply with KYC standards/Anti Money Laundering Measures (AML)/ combating Financing of Terrorism (CFT) and Modifications to customer Identification Procedure (CIP). For opening of accounts proof of identity, proof of address and recent photograph for all individual accounts. For all other accounts some more documents would be required to fulfill the norms.
  1. An Account in the names of two or more persons operated upon by any one or more or all of them, and the balance made payable to any one or more or all of them or anyone or more or all of the survivors of them or to the last survivor, as applicable.
  2. The mode of operation of a joint account should be specified at the time of opening the account and cannot be changed subsequently, without the written consent of all the joint account-holders.
  3. In a joint account of two persons to be operated upon by 'Either or Survivor' on the death of any one of them the surviving account-holder alone can operate on and will be entitled to the balance in the account, the heirs of legal representatives of the deceased account-holder will have no claim against the Bank. On the death of the surviving account-holder, his heirs or legal representatives alone will be entitled to claim the balance from the Bank.
  4. A joint account to be operated upon by 'Former or Survivor' can also be opened. Where the special instructions relating to the operation of an account reads 'Former or Survivor' the account shall be operated upon and the cheques/withdrawal forms shall be drawn by and the balance shall be repayable to the former i. e. the first named account-holder during his/her life time and only after his/her death by and to the second named account-holder if then surviving.
  5. In approved cases, an account may be opened in the names of associations, clubs, co-operative societies (with the permission of the Registrar of Co-operative Societies), Trusts or other non-trading Institutions for purposes of depositing savings, provided the relevant bye laws, rules, etc. are found acceptable to the Bank and are strictly adhered to and when required a suitable indemnity is given to the Bank.
  6. In the event of death of a sole depositor or of the surviving or the last surviving depositor, the amount payable in the account of such deceased depositor shall be paid to the legal representatives of such sole depositor or of the surviving or the last surviving depositor, as the case may be. "Legal representatives" shall include either the executor or the administrator who has obtained Probate or Letters of Administration from a Competent Court in India or the holder of a grant of Succession certificate or of any other proper grant of legal representation to the estate of such deceased depositor from a Competent Court in India. The Bank reserves the right to pay at its discretion the balance due in the account of such deceased account-holder to his/her heirs on a proper indemnity with or without sureties.
2. Account of Minors:

  1. A Savings Bank account of a minor may be opened to be operated upon by the natural guardian of the minor or by the guardian appointed by the Court.
  2. A Savings Bank Account may also be opened in
    1. the single name of a minor aged 10 years or more to be operated upon by the minor.
    2. the joint names of two minor who have completed the age of 10 years to be operated upon by them jointly.
    3. the joint names of two or more minors to be operated upon by a person who is the natural guardian of both or all the minors.
3. How to open Savings Bank Account:

Application to open a Savings Bank Account should be made on the Bank's prescribed forms duly completed with his name, address etc. Each applicant will be required to sign a declaration to the effect that he has read and accepted the Savings Bank Rules.

4. Illiterate Depositors:

Any depositor unable to write must attend in person and (in the presence of an approved witness who knows the depositor and is known to the Bank) affix his thumb impression to the application and other forms and have it attested by the signature of the approved witness. An illiterate depositor may lodge in person a passport size recent photograph with the Bank subject to provision of rules regarding withdrawals.

5. Average Quarterly Balance:

Bank will normally stipulate certain minimum balance/minimum Average Quarterly Balance (AQB) to be maintained as part of the terms and conditions governing operations of such accounts which will be displayed on the Bank’s Website. Failure to maintain minimum balance/ minimum Average Quarterly Balance (AQB) in the account will attract levy of charges as specified by the Bank from time to time. Upon completion of 45 days of the quarter, the average balance maintained by the customer in Savings Bank Account during the period completed, shall be advised through Short Message Service (SMS) requesting to maintain the stipulated AQB for the account to avoid penalty. The SMS shall only go to the account holders whose AQB is less than the prescribed AQB required to be maintained in account. Accordingly, if the requisite Average Quarterly Balance (AQB) of three months is not maintained in the savings bank account, the penal charges shall be levied by the system after the completion of the quarter and the same is notified to the customer through SMS. The charges shall be levied slab wise on the basis of Average Quarterly Balance (AQB) maintained in the account vis-à-vis stipulated AQB requirement. The slab structure for recovery of charges in the various categories of Saving Bank account is available on Bank’s website and is subject to revision from time to time.

6. Interest :

  1. Interest will be allowed at the rate prescribed by the Bank from time to time. The present rate of interest allowed on Savings Bank Account can be ascertained at the Bank. The Bank reserves the right to vary the rate of interest from time to time and to increase or decrease the rate of interest payable.
  2. Interest shall be paid on Savings A/c at the rate specified by Bank which will be calculated on daily product basis and will be credited quarterly in the months of May, August, November and February, respectively or at the time of closing A/c. Interest will be credited if it is Minimum Re.1/- .