IDBI BANK DEPOSIT POLICY

(August 2023)

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1. Preamble
2. Types of Deposit Account

3. Account Opening and Operations of Deposit Accounts

3.1 Account Opening 4
3.2 Operations of Deposit Accounts 8
3.3 Mandate 8
3.4 Addition or Deletion of the name/s of joint account holders 10
3.5 Nomination 10
3.6 Minors’ Account 11
3.7 Account of illiterate/Blind/Persons with autism/Transgender persons 11
3.8 Transfer of Account 12
3.9 Account Statement 12
3.10 Debit Card Hot Listing 13
3.11 Stop Payment Facility 13
3.12 Dormant Accounts 13
3.13 Interest Payment – Savings Bank 14
3.14 Interest Payment – Term Deposit 14
3.15 Calculation of Interest and different methodologies 16

4. Term Deposit
4.1 Type of Term Deposit 17
4.2 Premature Withdrawal of Term Deposit 19
4.3 Premature Renewal of Term Deposit 19
20
4.4 Renewal of Overdue Term Deposit 20
4.5 Advances Against Deposits 20
4.6 Settlements of dues in Deceased Deposit Account 21
4.7 Interest payable in Deceased Deposit Accounts 22

5. Other Important Information

5.1 Customer Information 22
5.2 Privacy / Confidentiality of Customers Accounts 22
5.3 Collection of local / outstation cheques 22
23
5.4 Insurance cover for Deposits 23
5.5 Safe Deposit Lockers 23
5.6 Extension of alternate deliver channels to Customers 23
5.7 SuoMotu
Suo MotuClosure
Closureand
andFreezing
FreezingofofSaving and Current Account
Account 24
5.8 Redressal of complaint and grievances 25
26
6. NRI Deposits (NRE/NRO/ FCNR) 26
7. Effective Date of FCNR Deposits 32
8. Portfolio Investment Scheme (PIS) 32
9. RFC Accounts 32
10. Post –facto change in policy matters 32

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DEPOSIT POLICY

1. PREAMBLE

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

1.2. 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 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 commitment to individual customers
outlined in Code of Banks Commitment to Customers. 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.

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2. TYPES OF DEPOSITACCOUNTS
While various deposit products offered by the Bank are assigned different names. The
deposit products can be categorized broadly into the following types. Definition of
major deposits schemes are as under: -
i) "Demand deposits" means a deposit received by the Bank which is
withdrawable on demand by the depositor;
a) "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;
b) "Current Account Deposits" 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 also includes other deposit
accounts which are neither Savings Deposit nor Term Deposit.

ii) "Term deposit" means a deposit received by the Bank for a fixed period
withdrawable only after the expiry of the fixed period and include deposits such
as Recurring / Fixed Deposits /Sweep-in deposits (held in units) or any other
form of Fixed Deposits.
3. ACCOUNT OPENING AND OPERATION OF DEPOSITACCOUNTS
3.1. Account Opening

The Bank will provide its customers with details of various types of accounts that they
may open with the Bank. Customers can make a choice on what type of account best
suits them, based on their requirements and applicable guidelines.
i) The Bank before opening any deposit account will carry out due diligence
as required under "Know Your Customer" (KYC) guidelines and all
guidelines issued by the RBI vide Master Directions on Know Your
Customer (KYC) 2016 (as amended from time to time) existing policy of
the Bank on KYC Norms and AML measures and guidelines issued by the
Indian Bank’s Association (IBA) and the Bank till date. Further, the Bank
will seek Re-KYC as and when required under the applicable Master
Direction or necessitated under an emerged situation or circumstance. It
would be the responsibility of the Customer to submit the Re-KYC as and
when sought by the Bank.
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ii) The bank is committed to provide basic banking services to disadvantaged
sections of the society. Bank will offer Basic Savings Bank Account
(BSBD) to this segment.
The BSBD Account shall have the following features:
a. No requirement of minimum balance
b. Free deposit of cash at bank branch as well as ATMs/CDMs
c. Free receipt/ credit of money through any electronic channel or by means of
deposit /collection of cheques drawn by Central/State Government agencies and
departments.
d. No limit on number and value of deposits that can be made in a month subject to
transactional restrictions as applicable to small A/cs.
e. Four Free withdrawals in a month, including ATM withdrawals. The free
withdrawals available to the BSBD Account holders can be made at all ATMs
(own-bank/other bank ATMs). Applicable Charges over and above the respective
transaction charges will be levied beyond Four and upto 10 withdrawals in a
month. No withdrawal beyond 10th withdrawal permitted.
f. Free ATM-cum-Debit Card

Bank shall provide additional value-added services, including issue of cheque book,
beyond the above minimum facilities, which may/may not be priced (in non-
discriminatory manner) subject to disclosure. The availing of such additional services
shall be at the option of the customers. However, while offering such additional services,
bank shall not require the customer to maintain a minimum balance.

The Bank has a separate product for opening accounts of beneficiaries of various Central
/ State Government Schemes including scholarship for students which is without any
restriction for ‘minimum balance’ requirement or ‘total credit limit’. Further, the account
is not being considered for classification as in-operative/dormant due to non-operation in
the account.

Before opening a BSBD account, bank shall take a declaration from the customer that
he/she is not having a BSBD account in any other bank.
iii) The account opening forms and other material would be provided to the
prospective customer by the Bank. The same will contain details of
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information to be furnished and documents to be produced for verification
and or for record. The Bank official must explain the procedural formalities
and provide necessary clarifications sought by the prospective customer
when he approaches for opening a deposit account.
iv) The regulatory guidelines require banks to categorize customers based on
risk perception and prepare profiles of customers for the purpose of
transaction monitoring. Inability or unwillingness of a prospective customer
to provide necessary information/details could result in the bank not
opening an account.
v) Inability of an existing customer to furnish details required by the bank to
fulfill regulatory directions and internal guidelines could also result in
closure of the account after due notice(s) is provided to the customer.
vi) For deposit products of Savings Bank Account and Current Deposit
Account, the Bank would normally stipulate certain minimum balances to
be maintained from time to time as part of terms and conditions governing
operation of such accounts. Non-maintenance of required minimum balance
in the account may attract levy of charges or conversion of accounts to
different product as specified by the Bank from time to time.
vii) For Saving Bank Account, the Bank may also place restrictions on number
of transactions, cash withdrawals, etc. for given period. Similarly, the Bank
may specify charges for issue of cheque books, additional statement of
accounts, duplicate pass book, folio charges, etc. All such details, regarding
terms and conditions for operation of the accounts and schedule of charges
for various services provided will be communicated to the prospective
customer while opening the account in the form of a leaflet and the same
shall be duly acknowledged by the customer.The details are also available
on Bank’s web site to the prospective depositor. Any changes in the
schedule of charges or the terms and conditions will be communicated to
the customers 30 days in advance by means of statement of accounts/e-
mail/SMS alert/notice board at our branch/ website. During the notice
period, the bank will not charge for non-maintenance of higher minimum
balance prescribed. Savings Bank customers who have not maintained the

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required minimum balance threshold for the monthly cycle will be sent an
intimation of the same on their mobile number or e-mail address or physical
address as registered with the Bank, at the end of their respective cycle for
restoration of balance. Their monthly balances will then be reviewed post
one month of their respective charge cycle, and in the event of non-
maintenance again the penal charges will be applied.
viii) Eligibility for Account Opening
a) Savings Bank Accounts can be opened for individual eligible person /
persons and certain organizations / agencies (as advised by Reserve Bank
of India (RBI) from time to time).
b) Current Accounts can be opened by individuals / Sole Proprietary Firm
JLG/ Partnership firms / Private and Public Limited Companies / HUFs /
Specified Associates / Societies / Trusts /Departments / Authority created by
Government (Central or State), Limited Liability Partnership etc.
c) Term Deposits Accounts can be opened by individuals / partnership firms
/ Private and Public Limited Companies / HUFs/ Specified Associates /
Societies / Trusts / Departments / Authority created by Government (Central or
State), Limited Liability Partnership etc.
ix) The due diligence process, while opening a deposit account will involve
satisfying about the identity of the person, verification of address,
verification of signature, satisfying about his occupation and source of
income. The due diligence process while opening a deposit account of an
NRI shall additionally involve establishing the NRI status of the client.

x) The Bank has a well-defined Policy on Know Your Customer Norms and
Anti Money Laundering Measures.
xi) In addition to the due diligence requirements, under KYC norms, except in
the case of NRE/ FCNR deposits pertaining to NRIs ,the Bank is required
by law to obtain Permanent Account Number (PAN) or alternatively
declaration in Form No. 60 as specified under the Income Tax Act,1961
and/or Rules there under.
xii) Submission of GSTIN: To avail input tax credit, the Bank recommends
submission of GSTIN for updation of the same in the Bank records.

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xiii) In case of failure to submit PAN, the Bank shall take necessary action as
required under the applicable rules.
xiv) FATCA Declaration: Confirmation regarding Residence Status for Tax
Purposes in Jurisdiction(s) outside India needs to be furnished. Further,
under section 285BA of the Income-tax Act,1961, additional details are to
be furnished where applicant is a resident outside India for Tax Purposes.
xv) The use of Aadhaar for KYC, Offline Verification, Authentication etc. shall
be in accordance with the Aadhaar (Targeted Delivery of Financial and
Other Subsidies Benefits and Services) Act 2016, the Aadhaar and Other
Law (Amendment) Act, 2019 and the regulations made there under.
xvi) The Bank offers Video based Customer Identification Process (V-CIP)
commonly known as Video KYC to identify and onboard customers. The
account opened using V-CIP is fully KYC compliant and fully operational.
The process is digital and paper-less and ensures end-to-end account
processing, including digital C-KYC.
3.2. Operations of Deposit Accounts

i) 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). The mandate for operating the
account can be modified with the consent of all account holders. In case of
change in address, email or phone number of the account holders or
observance of any discrepancies in the account level transactions, the same
needs to be intimated to the Bank by the account holder(s) to mitigate risk of
frauds.
ii) Operation of Joint Account - 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 by all/ Either or Survivor/
Anyone or Survivor/ Latter or Survivor / Former or Survivor). Operating
instructions of this nature are obtained from the customer at the time of
account opening or at a later date with due consent of all the account holders.
3.3. Mandate
The joint account holders can give any of the following mandates for the disposal of
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balance in the Savings accounts and term deposit accounts :

i. Either or Survivor: if the account is in the name of two individuals says, A &
B, the final balance along with interest, if applicable, will be paid to either of
account holders i.e. A or B, on date of maturity or to the survivor on death of any
one of the account holders.
ii. Anyone or Survivor: If the account is in the name of two or more individuals
say, A, B & C, the final balance along with interest if applicable, will be paid to
any of accountholders i.e. A or B or C, on the date of maturity.
On the death of any one of account holder say A, the final balance along with
interest if applicable, will be paid to any two of the surviving account holders i.e.
B or C. On the death of any two of account holder say A and B, the final balance
along with interest if applicable, will be paid to surviving accountholder i.e. C.
iii. Former or Survivor: If the account is in the name of two individuals say, A &
B, the final balance along with interest, if applicable, will be paid to the former
i.e. A on date of maturity and to the survivor on death of anyone of the account
holders.
iv. Later or Survivor: If the account is in the name of two individuals say, A & B,
the final balance along with interest, if applicable, will be paid to the latter i.e. B
on date of maturity and to the survivor on death of anyone of the account holders.
a. The above mandates will be applicable to or become operational only on or after
the date of maturity of term deposits. This mandate can be modified by the consent
of all the account holders.
b. In case of Term Deposits, if the joint depositors prefer premature withdrawal of
deposits in accordance with the mandate of ‘Either or Survivor’, ‘Anyone or
Survivor’ or ‘Former or Survivor’, bank may allow premature withdrawal of term
deposits to the depositors or surviving depositor/s without seeking concurrence of
legal heirs of the deceased deposit holder, provided all the depositors have given
a specific joint mandate for the said purpose at the time of opening the account or
any time subsequently during the tenure of the deposit.
c. 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.
d. The term deposit account holders at the time of placing their deposits can give
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instructions with regard to closure of deposit account or renewal of deposit for
further period on the date of maturity.
e. In case of absence of any instructions deposits will be treated as an auto renewal
deposit and would be renewed for a similar period as that of matured deposit.
f. In case of Sweep in Saving Term Deposit made from Savings Bank Account with
Mode of Operation instruction as Either or survivor/Former or survivor/ Anyone
or survivor, the depositors shall give the mandate to pay the principal along with
interest and permit premature withdrawals of the Sweep out fixed deposit on
written instruction from any one of them, any day before the maturity.

3.4. Addition or deletion of the name/s of joint accountholders

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.

3.5. Nomination

Nomination facility is available on all deposit accounts opened by the individuals in their
individual capacity. Nomination is also available to a sole proprietary concern account,
articles left in safe custody and safe deposit lockers. 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 in case of illiterate accounts. Nomination can
be modified by the consent of account holder/s. Nomination can be made in favour of a
minor also. In such cases at the time of making nomination, depositor has to give a name
of person (called appointee) who is a major and will receive the amount of deposit on
behalf of the nominee in the event of death of the account holder during the minority of
the nominee.
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 while opening a deposit account. In case of Deposits made by using Sweep out
facility same Nominee will be applicable as in the operative Bank Account.

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3.6. Minor’s Accounts

i) Saving Bank Account or Term Deposit Account can also be opened in the name
of a minor operated with natural guardian or with mother as the guardian (known
as Minor’s Account) or jointly with Guardian who is representing the Minor.
ii) Minors above the age of 10 years- Bank may allow a literate minor above 10
years who can comprehend the nature of banking transactions and can sign
uniformly to open and operate savings bank account independently on request.
Bank may put the age limit and transaction amount cap basis keeping in view
their risk management system. Bank may allow offering additional banking
services like internet banking, ATM/Debit card and Cheque book facility subject
to account will always remain in credit and will not be allowed to be overdrawn.
iii) KYC norms & due diligence of minor should be ensured while opening and
operating these accounts.
iv) On attaining majority on the same day account should be made Debit Frozen till
the time customer converts the minor account to major with required KYC
documents. Thus, bank shall initiate the prior communication to Minor accounts
that would attain to 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 the erstwhile minor duly verified by the natural
guardian would be obtained and kept on record

3.7. Account of Illiterate/Blind Person / Persons with autism, cerebral palsy,

mental retardation and multiple disabilities/ Transgender persons
i) The Bank may at its discretion open deposit accounts other than Current
Accounts of illiterate person after observing all necessary formalities. 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. No cheque book facility is provided for such Savings Bank Account.
At the time of withdrawal/ repayment of deposit amount and/or interest, the
account holder should affix his / her thumb impression or mark 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
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explain the terms and conditions governing the account to the illiterate.
ii) Bank will facilitate opening of Saving Bank accounts as well as Term
Deposit accounts of persons with visual impairment. Such accounts will be
operated by the accountholder personally. Cheque book facility, lockers,
retail loans and credit cards will be made available. Such accountholders
will have to be present before the branch official and affix thumb impression
and they will be identified through their photograph to facilitate operations.
Bank is also committed in introducing technology banking facilities
progressively via ATM & Internet banking in keeping with the availability
of supporting technology which will enable visually challenged persons to
operate their own accounts.
iii) Savings bank and term deposits can also be opened in the name of persons
with autism, cerebral palsy, mental retardation and multiple disabilities by
the legal guardian appointed by the District Court under Mental Health Act,
1987 or by the Local Level Committees set up under the National Trust for
Welfare of Persons with Autism,Cerebral Palsy, Mental Retardation and
Multiple Disabilities under Disabilities Act, 1999. Legal guardian, so
appointed, will furnish an indemnity-cum-undertaking bond duly stamped
as per the local law in force along with Guardianship Certificate.
iv) In case of a person claiming to be transgender and needs to open account or
to do any banking transaction, the person will be recognized as “Third
Gender” and the details shall be accepted in the AOFs/ or other applicable
forms as such. The salutation of such person shall be “Mx”. All transgender
customers shall be treated equally to other male/ female customers without
any discrimination.
3.8. Transfer of Account

The deposit accounts may be transferred to any other branch of the Bank at the request
of the customer.
3.9 Account Statement
As a part of Green initiative by our Bank, the physical account statement provided by the
Bank to Savings Bank and Current Deposit Account Holders is discontinued and the
account statements are available at out Digital Banking platforms viz. E -Statements, M-
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Passbook, Mobile Banking, WhatsApp and Internet Banking. Alternatively, the Bank
provides facility of Pass Book and the physical statements are provided on specific
request of customer subject to product guidelines and charges.
3.10 Debit Card Hot Listing
The Bank will accept ATM card / Debit card hot listing instructions from customers
through Internet Banking , Mobile Banking, Phone Banking channel - 24 hours a day
and from branch channel during customer hours. Phone Banking numbers are made
available to customers whenever a Card is issued and all branches contain a detailed
leaflet with the numbers.

3.11 Stop Payment Facility

The Bank will accept stop payment instruction from the customers in respect of cheques
issued by them through Net Banking, Mobile Banking and from Branch Channel.
Charges, as specified by the Bank from time to time will be recovered.

3.12 Dormant / Unclaimed account /Deposit

As per extant Reserve Bank of India (RBI) guidelines, an account would be treated as
inoperative / dormant if there are no customer induced transactions in the account for
over a period of two years. Debit Operation in such inoperative accounts would be
resumed / restarted /allowed after obtaining the revised KYC documents as per the extant
guidelines of the Bank on KYC norms.

An account / deposit would be treated as unclaimed if it is inoperative for 10 years or

more. A list of such accounts / deposits shall be displayed on the website of the Bank.
The list so displayed on the website shall contain only the names of the account holder(s)
and his / her / their address.

Such Dormant / Unclaimed account would be transferred to a separate account status in

the interest of the depositor and the Bank. No charges would be levied by the Bank for
migrating an account from Dormant / unclaimed to Operative account.

RBI has established The Depositor Education and Awareness Fund (the Fund). Under
the provisions of the Fund the amount to the credit of any account with the Bank which
has not been operated upon for a period of ten years or any deposit or any amount
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remaining unclaimed for more than ten years shall be credited to the Fund, within a
period of three months from the expiry of the said period of ten years. The Fund shall be
utilized for promotion of depositors’ interest and for such other purposes which may be
necessary for the promotion of depositors’ interests as specified by RBI from time to
time. The depositor would, however, be entitled to claim from the Bank his/her deposit
or any other unclaimed amount or operate his/her account after the expiry of ten years,
even after such amount has been transferred to the Fund. The Bank would be liable to
pay the amount to the depositor/claimant and claim refund of such amount from the Fund.

3.13 Interest Payments - Savings Bank Account

Interest on Savings is deregulated by Reserve Bank of India and paid as decided by the
Bank. Interest on savings deposits shall be calculated on a daily product basis and shall
be credited at quarterly or shorter intervals, as decided by the ALCO of the Bank.
Interest on savings bank accounts, including those frozen by the enforcement authorities,
shall be credited on regular basis irrespective of the operational status of the account.
In compliance to the latest guidelines of RBI, the Bank may provide differential rates of
interest on day end balances exceeding rupees one lakh, as per the discretion of the
ALCO of the Bank. Further, creation of Floating rate based deposit products by linking
the saving interest structure to external benchmarks may also be done, subject to
mark-up approval from the ALCO of the Bank.

3.14 Interest Payments- Term Deposit Account

i. The Interest on term deposits will be paid at the rates specified by the Bank taking
into account the overall guidelines issued by Reserve Bank of India / Indian
Banks’ Association (IBA) from time to time and as decided by the ALCO of the
Bank.

ii. In terms of Reserve Bank of India directives, interest shall be calculated at

quarterly intervals on term deposits and paid at the rate decided by the Bank
depending upon the period of deposits. Interest on deposits repayable for less than
3 months or where the terminal quarter is incomplete, interest shall be paid
proportionately for the actual number of days reckoning the year at 365 days. In
case of monthly deposit scheme, the interest shall be calculated for the quarter and

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paid monthly at discounted value. The interest on term deposits is calculated by
the Bank in accordance with the formulae and conventions advised by IBA.

iii. The interest on FCNR deposits shall be paid at the rates calculated in accordance
with the basis prescribed by the Reserve Bank of India (RBI) from time to time
for various maturities. The interest on FCNR deposits shall be paid on the basis of
360 days to a year and shall be calculated at intervals of 180 days each.

iv. The rate of interest on deposits will be prominently displayed in the branch
premises and also on the banks official website. Changes, if any, with regard to
the deposit schemes and other related services shall also be communicated upfront
and shall be prominently displayed.

v. 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 under
the Income-tax Act,1961.

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. The
said declaration is required to be submitted by the depositor for each of the deposit
placed with the Bank to avail the said exemption.

In case where PAN is not submitted by the customer:

a. TDS as per Income Tax rules will be applied
b. TDS certificate will not be issued
c. Form 15G/H will not be accepted
vi. Interest earned/accrued on NRE & FCNR term deposits is tax free in India under
the relevant provisions of Income-tax Act,1961 in India and hence no tax at source
is deductible in respect of these deposits. However, the Bank has statutory
obligation to deduct tax at source on any interest paid / payable on NRO SB/ term
deposits at the specified rates. The depositor can claim the benefit of reduced rates
of tax under Double Tax Avoidance Agreement (DTAA), which India has with
the governments of various countries, by submitting the documents prescribed by
the bank at the beginning of every financial year.

vii. All interest payments will be rounded off to the nearest rupee.

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viii. Presently, Single Rupee Deposit of Rs 2 Cr upto 5 Cr is classified as Premium
Term Deposit and Single Rupee Deposit above Rs. 5 Cr is classified as Bulk
Deposit with applicable RoI.

3.15 Calculation of Interest and different methodologies

3.15.1 Calculation of Interest for complete quarter as well as Broken Period

i) The calculation of interest for complete quarters is calculated by
reckoning 12 months in a year
ii) The interest for the broken period i.e. residual period beyond the
complete quarters is calculated reckoning 365 days in a year

3.15.2 Options for calculation of interest and deduction of TDS

3.15.2.1 The Bank provides an option to customers of calculation of

interest and deduction of TDS based on both Anniversary and Calendar
Quarter. The Calendar quarter system has been put in place in view of the
customer requirement for appropriation of income and deduction of tax
thereof in the relevant financial years.

3.15.2.2 The Calendar quarter system is the default method followed by the
Bank.On specific request from customer, the anniversary quarter system is
also provided.

3.15.2.3 In respect of Cumulative Deposits, even though the calculation of

interest and deduction of TDS is offered under calendar quarter method, the
calculation of such interest is done on calendar quarter, only for the purpose
of calculation of tax obligation. However, for the purpose of compounding of
the interest, the same is done on anniversary quarters only as such both the
methods do not have any difference in the interest calculation except for
application of TDS. In event of nil TDS, the interest amount would be
identical in both methodologies.

3.15.2.4 The difference in amount would arise in the two methodologies

only on account of the amount of difference in the TDS - which would be
different in case of Calendar quarter and anniversary quarter – as they would
be applied at different dates.
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3.15.2.5 In respect of Quarterly Interest Payout Deposits, interest under
Calendar Quarter methodology is calculated upto the last but one day of every
quarter. The interest of the last day is considered in the next quarter cycle.
3.15.2.6 Tax at Source (TDS) would be deducted on accrual basis.

4. Term Deposit

Term Deposits, also known as Fixed Deposits or Time Deposits, are deposits accepted
by the bank for fixed period and are repayable on expiry of the fixed period. Interest
is paid at quarterly rests to the depositor or compounded quarterly. At the specific
request of the depositor, interest could be paid at monthly rests also, but at a discounted
rate.

4.1 Types of Term Deposits:

i) Fixed Deposits- Interest paid out periodically.

i) Deposits can be accepted for a period as prescribed by RBI from
time to time
ii) Interest shall be payable Annually/ Quarterly / Monthly (at
discounted rate). In case of Annual payout option, interest shall be
compounded at quarterly rests.
iii) Interest may be paid by cash (subject to certain conditions of
Income Tax Act, 1961) or credited to operative account or by
issuance of PO/DD/ or by transferring the amount to other
operative account of the customer through RTGS/NEFT

ii) Cumulative Term Deposit –Interest accumulated on quarterly

compounding basis and payable on Maturity.

iii) Recurring Deposits –Investment of a fixed sum every month from the
Operative Account over a period of time. The Bank offers Recurring Deposits
under the Brand Name – IDBI Systematic Savings Plan (SSP)

a. Deposits can be accepted for a period as prescribed by RBI from time to

time.
b. Interest is calculated on quarterly compounded rests. Interest on
cumulative deposits is deemed as reinvested.
c. No interest outflow is allowed under this scheme till the maturity of the
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 IDBI Bank Deposit Policy
Term Deposit.
d. Penal fee, as applicable, will be applied on default of Recurring Deposit
Installment from second default installment onwards.
iv) Flexi - Fixed Deposit (FFD) - also known as Sweep in Saving/Current Term
Deposit. This term deposit provides facility to link the term deposit to a
saving /current account. Whenever the balance in a savings/current account
falls short to clear any debits in the operative account, the FFD can be
broken as per the set process of the Bank. This Term Deposit can be either
Cumulative Term Deposit or Non-Cumulative Term Deposit.
v) Tax Savings Term Deposit – is a term deposit wherein the customer gets a
tax benefit under Income Tax Act 1961 on the amount invested, although
the interest paid on these deposits is taxable.
vi) Foreign Currency Non Resident (FCNR) Deposits - Term Deposits
denominated in foreign currency for NRIs.
vii) Floating Interest Rate Term Deposit - While all the Term Deposits schemes
carry fixed interest rate , the Bank offers Floating Rate Term Deposits (FRTD)
linked to a directly observable and transparent market determined external
benchmark
viii) Deposits under Capital Gains Accounts Scheme, 1988- The Bank is
authorized to accept deposits under the Capital Gains Accounts Scheme
(CGAS), 1988 by CBDT, Department of Revenue, Ministry of Finance,
GOI. Long term Capital gains arising on transfer of capital assets ,is not
chargeable to tax if the amount of capital gain or net consideration has been
utilized for specified purposes within the stipulated period as laid down
under the Income-tax Act,1961. The amount of capital gain, which is not so
utilized for the specified purposes, could be deposited in special Savings
Bank or Term Deposit account opened with IDBI Bank Ltd as per the
provisions of CGAS, 1988.

ix) Term Deposits for Senior Citizens: The Bank offers additional interest rate
on term deposits for Senior Citizens over and above the normal interest
rates. The Senior Citizen rates are however not applicable to NRO &NRE

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Term Deposits and bulk term deposit. Bank shall extend Senior Citizen rates
on fixed deposits to be placed with it automatically on attainment of Senior
Citizen status, based on the date of birth available in the Bank records
without obtaining any specific customer request for the same for all KYC
compliant accounts.
x) The Bank offers Deposits with Non-Callable option in select buckets. These
deposits shall carry differential interest rates and shall be offered for
minimum deposit amount exceeding 15 lacs. However, no pre-mature
/partial withdrawal facility is available on these deposits.
xi) The Bank is also having the provision for offering Green Deposits to aid
customers in achieving their objectives of contributing towards a sustainable
environment, where-in the funds deposited would be utilized for green
financing, as prescribed by RBI in its framework for acceptance of Green
Deposits.

4.2 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. Interest payable on prematurely withdrawn deposits will be the rate
applicable for the amount and the period for which the deposit remained with the Bank
(as per the prevailing interest rate on the original date of deposit). The Bank shall also
levy penal interest @ 1% on pre-mature withdrawal of deposits. This penalty shall be
applicable across all Term Deposit variants, as per the discretion of the ALCO of the
Bank. In compliance with RBI directives, no interest is payable on pre-mature closure of
NRE & FCNR term deposits in less than a year. The Bank may come out with special
notice period deposit schemes from time to time. The threshold amount of deposit and
the period of advance intimation to be served by the customers, shall be decided as per
the discretion of the ALCO of the Bank.

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4.3 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 and not at the contracted rate. Such deposits would be charged with premature
closure penalty, if applicable.

4.4 Renewal of Overdue Term Deposit

When a term deposit is renewed on maturity, the interest rate as applicable on the date of
maturity, 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 or if a term deposit matures and proceeds are unpaid, the amount left
unclaimed with the Bank shall attract rate of interest as applicable to savings deposits
or the contracted rate of interest on the matured Term Deposits, whichever is lower. In
the absence of any customer instructions, the Bank follows the practice of auto renewal
of deposits on the date of maturity for a similar period as the original deposit. The rate
of interest on this renewed deposit will be the interest rate as applicable for such period
on the date of renewal.

4.5 Advances Against Deposits

The Bank may consider request of the depositor/s for overdraft facility against term
deposits duly discharged by the depositor/s on execution of necessary security
documents. The Bank may also consider overdraft 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 guardian/applicant.

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4.6 Settlement of dues in Deceased Deposit Account

4.6.1 Bank will follow a simplified procedure for settlement of accounts of

deceased account holders. The claims in respect of deceased depositors and
release of payment to survivor(s)/ nominees will be made within a period
not exceeding 15 days (for cases with nomination) and not exceeding
30 days (for cases without nomination) from the date of receipt of the claim
subject to the production of proof of death of the depositor and suitable
identification of the claimant(s) to the Bank’s satisfaction. With a view to
facilitate timely settlement of claims on the death of a customer, Bank has
provided the Claim Form on Website for customer to access the same for
submission to branch physically.

4.6.2 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.

4.6.3 The above procedure will be followed even in respect of a joint account
(when all the holders die) and where nomination is registered with the
Bank.

4.6.4 In a joint deposit account, when one of the joint account holders dies, the
Bank is required to make payment jointly to the legal heirs of the deceased
person and the surviving depositor(s). 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 in production of legal papers by the heirs of the
deceased.

4.6.5 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

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behalf without insisting on legal documents as per the latest death claim
policy of the Bank. This is to ensure that the common depositors are not
put to hardship on account of delays in completing legal formalities. For
the amount outstanding over the prescribed limit the necessary legal
formalities as prescribed by the Bank from time to time need to be completed.

4.7 Interest Payable on Term Deposit in Deceased Account

i) 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. From the date
of maturity to the date of payment, the Bank shall pay simple interest at the
applicable Savings rate for the period for which the deposit remained with
the Bank beyond the date of maturity; in case the deposit is not rolled over.
ii) If the amount of deposit is claimed before the date of maturity, interest at the
rate applicable to the period for which the deposit has remained with the
bank will be paid.

5 . OTHER IMPORTANT INFORMATION

5.1 Customer Information

The Bank ensures to maintain the secrecy of the customers personal information. The
information is used, if necessary, only internally or for creating awareness
(telephonic/written) of the new products/services to the customers.

5.2 Privacy and Confidentiality of Customers Accounts

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. The Bank
may also disclose the customer information, as per the prevailing practice, amongst banks
to exchange credit information and credit opinion on the standing (general position) of
the customers/ borrowers. The Bank follows the guidelines framed by RBI and IBA in
this regard.

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5.3 Collection of local /outstation cheques

The Bank has a Cheque collection policy and payment of interest for delayed collection
of cheques and the same is available on the Bank’s Website.
5.4 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 coverage is upto a maximum of Rs 5 lac per depositor.
Deposits in the name of banks, central and state governments (including quasi
government bodies, local autonomous bodies, Government Corporation) and foreign
government are not covered under the scheme. The details of the insurance cover in force
will be made available to the depositor.
5.5 Safe Deposit Lockers

This facility is not offered through all bank branches 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 another individual(s), HUFs,
firms, limited companies, associates, societies, trusts etc. In respect of lockers held in
joint names with mode of operations ‘Either or Survivor’, ‘Any one of Survivor’, ‘Former
or Survivor’, ‘Latter or Survivor’, no nomination facility is provided. Where the mode
of operations is ‘Jointly’ each hirer may appoint a nominee on his/her behalf.

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, if the contents of the locker are
not of great value / importance.

5.6 Extension of Alternate Delivery Channels to Savings Bank & Current

Deposit account holders
The Bank offers choice of electronic channels to customers for conducting their banking
transactions. The choice of electronic channels includes ATM, BNA, Internet banking,
phone banking and mobile banking including SMS and WhatsApp banking facility.
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 IDBI Bank Deposit Policy
Wherever such electronic facilities are offered as a part of the basic account/product,
bank will obtain specific consent of the customers for availing the facility.
Debit card- Bank issues Debit cards to customers having Saving Bank/Current
Accounts. The Bank charges on debit card transactions within stipulated benchmark as
per regulatory guidelines. The Bank has a comprehensive debit card issuance policy
including policy on co-branded debit cards approved by the Board and issues debit cards
in accordance with the policy.
Mobile and Internet banking- Bank has an easy registration process for Mobile and
Internet Banking. The Bank has placed transaction limits based on risk perception and
mitigation measures with the approval of the Board. Use of mobile banking services for
cross border inward and outward transfers is strictly prohibited.

5.7 Suo Moto Closure and Freezing of Accounts

The Bank shall close accounts, which are considered undesirable and un- remunerative.
These accounts shall be closed only after sending notice through bulk SMS/E-mail etc.
as per records available in the account. Examples of undesirable and un-remunerative
features are:
a. Savings Bank Account being used either for the purpose for which it is not allowed
or for the purpose of routing transactions which are dubious or undesirable, the
Bank reserves the right to close such Savings Bank Account by giving due notice
to the customer based on the clarification received on such transactions..
b. Drawing cheques without funds.
c. Rash / fraudulent transactions routed through Bank account which may expose the
Bank to unnecessary risks.
d. Zero Balance Accounts
e. Dormant / inoperative accounts.
f. Accounts where transactions, such as huge cash transactions, are being made,
disproportionate to the given profile of the customer.
g. Accounts in which, in the opinion of the Bank/ Regulatory /Government
authorities, transactions having Money Laundering angle are being conducted.
h. Accounts, in which, the Bank is not able to apply appropriate KYC measures due
to non-furnishing of information by customer and / or non–co-operation in this
regard.
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 IDBI Bank Deposit Policy

i. Non-compliance of Minimum Balance requirements for current and savings

account as applicable to the relevant scheme /product.
j. Payroll Accounts which have remained non-funded for more than 6 months
without credit of salary are redundant in nature and will be suo-moto closed after
complying the minimum notice period by way of bulk SMS/E-Mail/ Public Notice
etc.
k. KYC Non-Compliance :

1) In case of existing relationships, the Bank shall apply ‘partial freeze’ as

follows:
Six months before the timeline of two, eight or ten years as per the risk
categorization of account, bank shall issue first notice to the customer to update
the KYC details.
i) If there is no response to the said notice / if the KYC is not updated even
after this notice, another notice shall be issued three months before the
time of two, eight or ten years asking the customer to update the KYC
details.
ii) On completion of timeline, If the KYC is still not updated by the
customer, ‘partial freezing’ shall be imposed by allowing all credits and
disallowing all debits
iii) The account holders shall have the option, to revive their accounts by
submitting the KYC documents.
iv) The activity of sending notices and partial freezing of accounts shall be
carried out centrally /locally by the Bank/ Branch
2) Closure of Accounts:
i) Where the Bank is unable to apply appropriate KYC measures due to non-
furnishing of information by customer and / or non-cooperation in this
regard, Bank shall have a right to close such accounts as per Customer
Severance policy of the Bank.
ii) Bank induced of closure of accounts due to non KYC complaint shall be
initiated by the Branch after giving proper notice to the account holder as
per the Customer Severance Policy of the Bank. Bank / Branches shall
capture appropriate closure reasons in core banking software while closing
such non KYC compliant accounts
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 IDBI Bank Deposit Policy
The Bank has a Customer Severance Policy and the customers may refer the same from
the Branch for operational process and for clarifications

5.8 Redressal of complaints and grievances

The Bank has a Grievance Redressal Policy and the customers may refer the same from
the Branch. The same is also available on the Bank’s website.
6. Non- Resident Deposit Accounts

Particulars Non-Resident Foreign Currency Non-Resident Ordinary Rupee

(External) Rupee (Non-Resident) Account Scheme [NRO
Account Scheme Account (Banks) Account]
[NRE Account] Scheme [FCNR (B)
Account
1 Eligibility Non-Resident Indian (NRI): Non-resident Indian (NRI) means a person resident outside
India who is a citizen of India or is a person of Indian origin. As per The Foreign Exchange
Management Act, 1999 (FEMA) "Person" includes –
i) An individual,
ii) A Hindu undivided family,
iii) A company,
iv) A firm,
v) An association of persons or a body of individuals, whether incorporated or not.
vi) Every artificial juridical person, not falling within any of the preceding sub-clauses
vii) Any agency, office or branch owned or controlled by such person

Person of Indian Origin (PIO):A ‘Person of Indian Origin (PIO)’ is a person resident
outside India who is a citizen of any country other than Bangladesh or Pakistan or such
other country as may be specified by the Central Government, satisfying the following
conditions:

a. Who was a citizen of India by virtue of the Constitution of India or the Citizenship
Act, 1955 (57 of 1955); or
b. Who belonged to a territory that became part of India after the 15th day of August,
1947; or
c. Who is a child or a grandchild or a great grandchild of a citizen of India or of a
person referred to in clause (a) or (b); or
d. Who is a spouse of foreign origin of a citizen of India or spouse of foreign origin
of a person referred to in clause (a) or (b) or (c)

A PIO will include an ‘Overseas Citizen of India’ cardholder within the meaning of
Section 7(A) of the Citizenship Act, 1955. Such an OCI Card holder should also be a
person resident outside India. Opening of NRE accounts in the names of

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 IDBI Bank Deposit Policy

individuals/entities of Bangladesh / Pakistan nationality / ownership require approval of

Reserve Bank of India. However, individuals of Bangladesh nationality can open an NRO
account subject to the individual(s) holding a valid visa and valid residential permit issued
by Foreigner Registration Office (FRO)/ Foreigner Regional Registration Office (FRRO)
concerned. The due diligence process while opening a deposit account of an NRI shall
additionally involve establishing the NRI status of the client.

2 Type of Savings, Current, Term Deposit only Savings, Current, Recurring,

Account Recurring, Fixed Fixed Deposit
Deposit
3 Currency Indian Rupees US Dollar ,Euro ,Pound Indian Rupees
Sterling ,AUD CAD ,SGD
,HKD ,CHF and JPY
4 Period for From one to ten years For terms not less than 1 yr As applicable to resident
fixed and not more than 5 yr accounts.
deposits
5 Taxability Interest earned/accrued on NRE & FCNR term The Bank has statutory obligation
deposits is tax free in India under the relevant to deduct tax at source on any
provisions of Income-tax Act,1961 in India and hence
interest paid / payable on NRO
no tax at source is deductible in respect of these SB/ Term deposits at the specified
deposits rates. The depositor can claim the
benefit of reduced rates of tax
under Double Tax Avoidance
Agreement (DTAA), which India
has with the governments of
various countries, by submitting
the documents prescribed by the
bank at the beginning of every
financial year.
6 Pre-mature In compliance with RBI directives, no interest is As applicable to resident deposits
withdrawal
payable on pre-mature closure of NRE & FCNR term
of fixed
deposits deposits in less than a year.

7 Minimum The prescription for FCNR (B) deposits can The rules and guidelines of
Deposit minimum balance under be accepted for resident accounts (domestic
Amount various types of NRE minimum amount US deposits), related to minimum
deposits shall be as per Dollar 1000 or deposit are applicable to NRO
the applicable Schedule equivalent in case of any accounts.
of Facilities (SOF) in case other currencies.
of NRE SB / CA &
Rs.10,000 for NRE FD.
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8 Joint Opening of joint NRE/FCNR (B) /NRO accounts can be permitted in the names of two or
Account more non-resident individuals who are persons of Indian nationality or origin. Non-
Resident Indian (NRI) may be permitted to open NRE/NRO/ FCNR (B) account with their
resident close relative (relative as defined in Section 2 (77) of the Companies Act 2013
read with rule 4 of the Companies (specification of definitions details) rules 2014) on
former or survivor basis. The resident relative can operate the account as a Power of
Attorney holder during the life time of the NRI/ PIO account holder.

9 Permissible Following credit transactions shall be allowed in Credits in the NRO accounts shall
credits NRE accounts in conformity with conditions, if any, be allowed by way of:
laid down against each item.
 Proceeds of remittances to India in any permitted  Credit balance in the existing
currency through normal banking channels resident account at the time of
 Proceeds of personal cheques drawn by the re-designation of the resident
account holder on his foreign currency account account as NRO account.
and bank drafts payable in any permitted  Proceeds of remittances from
currency including instruments expressed in outside India through normal
Indian rupees for which reimbursement is banking channels received in
received in foreign currency, deposited by the any permitted foreign
account holder, provided the bank is satisfied that currency.
the account holder is still resident outside India  Any foreign currency, which is
and drafts are standing / endorsed in the name of freely convertible, tendered by
the account holder. the account holder during his
 Proceeds of account payee cheques, demand temporary visit to India.
drafts / bankers' cheques, issued against Foreign currency exceeding
encashment of foreign currency, where the USD 5000 or its equivalent in
instruments issued to the NRE account holder are the form of cash should be
supported by encashment certificate issued by supported by currency
Authorised Dealer Category-I / Category-II. declaration form. Rupee funds
 Proceeds of foreign currency / bank notes should be supported by
tendered by account holder during his temporary encashment certificate, if they
visit to India, provided (a) the amount was represent funds brought from
declared on a Currency Declaration Form (CDF), outside India.
where applicable, and (b) the notes are tendered  Transfers from rupee accounts
to the bank in person by the account holder of non-resident banks
himself/herself and the bank is satisfied that  Legitimate dues in India of the
account holder is a person resident outside India. account holder. This includes
 Transfers from other NRE / FCNR (B) accounts. current income like rent,
 Interest accruing on the funds held in the account. dividend, pension, interest, etc.
 Interest Earned on NRO accounts (Savings &  Sale proceeds of assets
Fixed Deposits) held with IDBI Bank may be including immovable property
credited to NRE accounts held with IDBI Bank, acquired out of rupee/foreign
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 IDBI Bank Deposit Policy

if requested by the customer, after confirming currency funds or by way of

that appropriate TDS has been deducted on the legacy/inheritance.
interest earned.  Transfer from existing
 Other current income viz. dividend, rent, etc may NRO/NRE/FCNR (B) account
be credited to the NRE accounts, if requested by of the account holder.
the customer, after obtaining certificate from  Resident individual may make
Chartered Accountant in Form 15 CA & 15 CB a rupee gift to a NRI/PIO who
stating that necessary tax has been deducted / is a close relative of the
paid / provided for as the case may be. resident individual [Close
 Interest on Government securities and dividend relative as defined in Section 2
on units of mutual funds, provided the securities (77) of the Companies Act
/ units were purchased by debit to account 2013 read with rule 4 of the
holder‟s NRE / FCNR (B) account or out of Companies (specification of
inward remittance through normal banking definitions details) rules 2014]
channels. by way of crossed cheque
 Maturity proceeds of Government dated /electronic transfer. The gift
securities / Treasury bills, sale proceeds of units amount should be within the
received from domestic mutual funds, Bonds overall limit per financial year
issued by a PSU in India and other investments as permitted under the
permitted for NRIs on repatriation basis provided Liberalised Remittance
the securities / units were originally purchased by Scheme (LRS) for a resident
debit to account holder‟s NRE / FCNR (B) individual.
account or out of remittances received from  Resident individual may lend
abroad. to a Non-resident Indian (NRI)/
 Refund of share / debenture subscriptions to new Person of Indian Origin (PIO)
issues of Indian companies or portion thereof, if close relative [means relative
the amount of subscription was paid earlier from as defined in Section 2 (77) of
the same account or from another NRE / FCNR the Companies Act 2013 read
(B) account of the account holder or by with rule 4 of the Companies
remittance from abroad through normal banking (specification of definitions
channels details) rules 2014] by way of
 Refund of application / earnest money made by crossed cheque /electronic
the house building agencies on account of non- transfer, subject to conditions
allotment of flat / plot, together with interest if within the overall limit under
any, (net of income tax payable thereon) provided the Liberalised Remittance
the original payment was made out of NRE / Scheme per financial year
FCNR (B) account of the account holder or by available for a resident
remittance from abroad through normal banking individual. The loan amount
channel to the house building agencies should be credited to the NRO
 Any other transaction, if covered under general a/c of the NRI /PIO.
or special permission granted by Reserve Bank of

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India subject to compliance with conditions, if

any, laid down by it.
 No credit to NRE account by deposit of INR cash
is allowed

10 Permissible Following debit transactions may be allowed in NRE  All local payments in rupees
Debits accounts: including payments for
 Local disbursements. investments in India subject to
 Remittances abroad. compliance with the relevant
 Transfer to other NRE / FCNR (B) accounts of regulations made by the
the account holder or any other person eligible Reserve Bank.
to maintain such account and also to NRO  Remittance outside India of
account current income like rent,
 Investments in shares / securities / commercial dividend, pension, interest,
paper of an Indian company and other etc. in India of the account
investments permitted on repatriation basis or holder.
for purchase of immovable property in India  Remittance up to USD One
provided such investment / purchase is covered million, per financial year
by general / special permission granted by (April –March) for all
Reserve Bank of India. bonafide purposes, to the
 Any other transaction generally or specially satisfaction of the authorised
permitted by Reserve Bank of India. dealer bank.
 Transfer to NRE account of
NRI within the overall ceiling
of USD one million per
financial year subject to
payment of tax, as applicable

11 Repatri- Entire balance (Principal & Interest) is freely Not repatriable except for all
ability repatriable. current income.

Balances in an NRO account of

NRIs/ PIOs are remittable up to
USD 1 (one) million per financial
year (April-March) along with
their other eligible assets.
12 Change in All the resident Indian accounts needs to be either closed or converted to NRO account.
residential Accordingly, TDS will also be applicable on all accounts.
status from
resident to
non-
resident

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13 Change of All the NRI Savings Bank Account and Term Deposit shall be either closed or converted
Status from to Resident Indian Account. TDS would be applicable as per the Resident Indian Scheme.
Non- FCNR (B) deposit can be maintained till maturity.
Resident to
Resident

14 Operations  Bank may allow operations on NRE accounts by Bank may allow operations on an
by residents in terms of mandate granted in the NRO account by Mandate Holder
Mandate residents favour by the non-resident account granted in favour of a resident by
Holder
holders, provided they are restricted to the non-resident individual
withdrawals for local payments. account holder provided such
 The resident mandate holders shall not, operations are restricted to:
however, be allowed to repatriate outside India  All local payments in Rupees
funds held in the accounts under any including payments for
circumstances to third parties or make payment eligible investments subject to
by way of gifts to a resident on behalf of the compliance with relevant
account holder or transfer funds from the regulations made by the
account to another NRE account. Reserve Bank; and
 The mandate holder may however remit funds  Remittance outside India of
through normal banking channels to the account current income in India of the
holder himself. non-resident individual
account holder, net of
applicable taxes. The mandate
holder is not permitted to
repatriate outside India funds
held in the account other than
to the non-resident individual
account holder nor to make
payment by way of gift to a
resident on behalf of the non-
resident account holder or
transfer funds from the
account to another NRO
account.

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7. Effective date of FCNR Deposit

The effective date of commencement and payment of interest on FCNR (B) deposits
should be determined as per the guidelines given below:

 When the amount for the deposit is remitted into our Nostro A/c. - From the date of
credit to our Nostro Account
 When the amount for the deposit is by means of cheque - From the date of credit to
our Nostro Account.
 When the amount for the deposit is from renewal or from existing deposit (NRE a/c)
- From date of closing of existing deposit or from the date of debit to NRE a/c. as
the case may be.
8. Portfolio Investment Scheme
An NRI intending to buy and sell shares / convertible debentures of an Indian company
through a registered broker on a recognized stock exchange in India should apply in
prescribed form to the bank for participating in the Scheme on repatriation and / or non-
repatriation basis.
While applying, the NRI should also undertake that
i) The particulars furnished are true and correct;
ii) He has no dealing with/ he will not deal with any other designated
branch/bank under PIS;
iii) He will ensure that total holding in shares / convertible debentures, both
on repatriation and non-repatriation basis in any one Indian company at
no time shall exceed 5 per cent of the paid up capital/ paid up value of
each series of convertible debentures of that company.

The Bank offers PIS Scheme vide its two branches at Fort-Mumbai and Kochi-Kerala.
Additional centers are under consideration for the convenience of NRI Customers
desirous of availing PIS Services from other locations. NRI Customers may kindly visit
the website or contact the Bank for list of updated branches.
9. RFC Accounts
RFC account can be opened by Returning NRI to hold funds in foreign currency received
/realized / acquired as part of permissible credits under FEMA including Balances in
NRE/ FCNR (B) accounts on change in residential status from Non-Resident to Resident.
RFC account can also be opened by Resident Indians for holding foreign currency
received as part of permissible credits under FEMA

10. Post-facto change in policy matters

Policy shall stand revised to the extent of changes in any of the guidelines as might be
advised by RBI /Govt. and any other regulatory bodies from time to time relating to this
policy.

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