INDEX DOMESTIC DEPOSIT POLICY POINT NO.

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1 INDEX DOMESTIC DEPOSIT POLICY POINT NO. SUBJECT PAGE NO. 1 PREAMBLE 1 2 TYPES OF DEPOSIT ACCOUNTS DEMAND DEPOSITS SAVING DEPOSITS CURRENT ACCOUNTS OVERDUE TERM DEPOSITS TIME DEPOSITS TERM DEPOSIT BULK DEPOSIT NON AVAILABILITY OF PREMATURE OPTION 2 3 ACCOUNT OPENING AND OPERATION OF DEPOSIT 3 ACCOUNTS 3.1 OPENING OF ACCOUNTS SMALL DEPOSIT ACCOUNTS ZERO BALANCE ACCOUNTS BASIC SAVINGS BANK DEPOSIT ACCOUNT BSBDA FREQUENTLY ASKED QUESTIONS MINIMUM BALANCE & PENAL CHARGES LEVY OF PENAL CHARGES ON NON-MAINTENANCE OF 7 MIN. BAL.IN SAVINGS BANK ACCOUNTS 3.6 CASH WITHDRAWAL AND DEPOSIT AT NON BASE 7 BRANCHES 4 WHO CAN OPEN THE ACCOUNTS EXTRA PRECAUTIONS TO BE TAKEN IN THE OPENING 8 OF THE FOLLOWING TYPES OF ACCOUNTS. 4.2 KYC REQUIREMENTS AND FACILITATING OPENING / 9 OPERATION OF ACCOUNTS OF THE BANK CUSTOMERS OPENING OF ACCOUNTS BY CLOSE RELATIVE SUCH 9 AS PARENTS, SON, DAUGHTER, SPOUSE ETC FULL OPERATIONAL FACILITIES IN JOINT ACCOUNTS 10 WITH SPOUSE STAYING AT SEPARATE STATION ACCOUNT PORTABILITY / OPENING OF NEW BANK 10 ACCOUNTS ACCOUNTS OF MIGRATORY WORKERS RIGHTS OF TRANSGENDER PERSONS - CHANGES IN 11 BANK FORMS / APPLICATIONS ETC 4.3 CUSTOMER ACCEPTANCE POLICY & CUSTOMER 11 IDENTIFICATION PROCEDURE CUSTOMER ACCEPTANCE POLICY CUSTOMER IDENTIFICATION PROCEDURE BRANCHES TO SEND THANKS / WELCOME LETTERS 12 TO ALL THE NEW CUSTOMERS AFTER OPENING OF ACCOUNT TO COMPLY WITH KYC NORMS 4.5 NON INSISTENCE FOR INTRODUCTION 12 5 TYPES OF ACCOUNTS OTHER THAN USUAL DEMAND 12 AND TIME DEPOSITS 5.1 MINORS ACCOUNTS OPENING OF ACCOUNTS OF SALARIED PERSONS OPENING OF CORPORATE SALARY ACCOUNTS OPENING OF ZERO BALANCE BASIC ACCOUNTS OF THE 13 STUDENTS OPENING OF BANK ACCOUNTS OF FOREIGN STUDENTS OPENING OF SAVINGS ACCOUNT JOINTLY WITH NRI ACCOUNT OF ILITERATE / BLIND ACCOUNT 15

2 5.5 ACCOUNT OF VISUALLY IMPAIRED PERSONS OPENING OF BANK ACCOUNT OF A PERSON WHO HAS LOST 15 BOTH HIS / HER HANDS AND COULD NOT SIGN THE CHEQUE / WITHDRAWAL FORM 5.7 OPENING OF ACCOUNT OF DISABLE PERSONS WITH 16 AUTISM, CEREBRAL PALSY, MENTAL RETARDATION AND MULTIPLE DISABILITIES NEED FOR BANK BRANCHES / ATMs TO BE MADE 16 ACCESSIBLE TO PERSONS WITH DISABILITIES 5.8 ACCOUNT OF MARRIED WOMAN OPENING OF ACCOUNT OF MINORITY COMMUNITIES OPENING OF CURRENT ACCOUNTS - NEED FOR DISCIPLINE ACCOUNTS OF PROPRIETARY CONCERNS 17 6 NOMINATION NOMINATION FACILITY FOR DEPOSITORS NOMINATION IN CASE OF JOINT DEPOSIT ACCOUNT 20 7 IDENTIFICATION OF BENEFICIAL OWNER & DUE DILIGENCE PERMANENT ACCOUNT NUMBER (PAN) OR GENERAL INDEX 20 REGISTER (GIR) 7.2 REFUSAL TO OPEN AN ACCOUNT PARTIAL FREEZING OF CUSTOMER ACCOUNTS IN 21 CASE OF NON-COMPLIANCE OF KYC REQUIREMENTS. 7.4 ENHANCED DUE DILIGENCE PROCEDURE SIMPLIFIED NORMS FOR SELF HELP GROUPS (SHGs) 21 8 TYPE OF MANDATE IN JOINT ACCOUNTS EITHER OR SURVIVOR ANY ONE OR SURVIVOR/S MANDATE FOR TERM DEPOSITS POWER OF ATTORNEY 22 9 RATE OF INTEREST ON CURRENT DEPOSIT / SAVINGS 22 DEPOSIT 9.1 CALCULATION OF INTEREST PAYMENT OF INTEREST ON TERM DEPOSITS 23 MATURING ON HOLIDAYS 9.3 ROUNDING OF TRANSACTIONS PAYMENT OF INTEREST TO SENIOR CITIZENS INTEREST RATES FOR STAFF MEMBERS AND EX- 24 STAFF MEMBERS 9.6 CATEGORIES OF STAFF ELIGIBLE FOR BENEFITS INTEREST RATE ON DEPOSITS FOR CHAIRMAN AND 26 MANAGING DIRECTOR AND EXECUTIVE DIRECTOR 9.8 INTEREST RATE ON CURRENT ACCOUNTS MAINTAINED BY 26 REGIONAL RURAL BANKS 9.9 MICR CODE AND IFSC CODE CONSEQUENCES OF TRANSFER OF BRANCH OF ONE 26 BANK TO ANOTHER BANK 9.11 DISCRETION TO PAY INTEREST ON THE MINIMUM 26 CREDIT BALANCE IN THE COMPOSITE CASH CREDIT ACCOUNT OF A FARMER. 10 ISSUE OF CHEQUE BOOK IN PERSON TO PERSON OTHER THAN CUSTOMER TO CUSTOMER BY POST STATEMENT OF ACCOUNT AND PASS BOOKS OPERATIONS IN ACCOUNTS OTHER THAN USUAL 28 DEMAND & TIME DEPOSITS 11.1 TYPES OF SICK / OLD INCAPACITATED ACCOUNT 28 HOLDERS 11.2 FACILITY TO SICK / OLD / INCAPCITATED NON- 28 PENSION ACCOUNT HOLDERS 11.3 DISHONOUR / RETURN OF CHEQUES 28

3 11.4 DISHONOUR OF ELECTRONIC FUNDS TRANSFER FOR INSUFFICIENT OF FUNDS DEALING WITH INCIDENCE OF FREQUENT DISHONOUR WRITING OF CHEQUES IN ANY LANGUAGE SWITCHING BANKS BY CUSTOMERS SETTLEMENT OF DEATH CLAIM SETTLEMENT OF CLAIMS IN RESPECT OF FIRST 30 DEPOSIT HOLDER 15.2 SETTLEMENT OF CLAIMS IN RESPECT OF MISSING 31 PERSONS 16 INTEREST PAYMENTS & AUTOMATIC RENEWAL MANDATE GIVEN MANDATE NOT GIVEN DEDUCTION OF TAX ADDITION OR DELETION OF THE NAME/S OF JOINT 32 ACCOUNT HOLDERS 19 CUSTOMER INFORMATION SECRECY OF CUSTOMER'S ACCOUNTS PREMATURE WITHDRAWAL OF TERM DEPOSIT BELOW RS. 1 CRORE RS. 1 CRORE TO RS. 10 CRORES ABOVE RS. 10 CRORES TO ALLOW PART WITHDRAWAL OF TERM DEPOSIT DEATH OF DEPOSITOR CONVERSION OF TERM DEPOSITS / RECURRING 35 DEPOSIT FOR REINVESTMENT IN TERM DEPOSIT 22.1 WITHDRAWAL OF TERM DEPOSITS FOR 35 REINVESTMENT FOR LONGER MATURITY 23 RENEWAL OF OVERDUE TERM DEPOSITS RENEWAL OF TERM DEPOSIT ON THE DATE OF 35 MATURITY 23.2 RENEWAL OF OVERDUE TERM DEPOSITS IF 36 PRESENTED AFTER 14 DAYS OF MATURITY 23.3 OVERDUE TERM DEPOSIT NOT RENEWED BUT 36 ENCASHED 23.4 FROZEN TERM DEPOSITS ADVANCES AGAINST DEPOSITS ISSUE OF TERM DEPOSIT RECEIPTS INSURANCE COVER FOR DEPOSITS STOP PAYMENT FACILITY INOPERATIVE / DORMANT ACCOUNTS INOPERATIVE / DORMANT ACCOUNTS RBI 39 CIRCULAR 29.1 ALLOWING OPERATIONS IN INOPERATIVE ACCOUNTS TREATMENT OF ACCOUNTS OPENED FOR CREDIT OF 40 SCHOLARSHIP AMOUNTS UNDER GOVERNMENT SCHEMES 30 SAFE DEPOSIT LOCKERS NOMINATION FACILITIES FOR SAFE CUSTODY 41 ARTICLES AND SAFE DEPOSIT LOCKERS 31 REDRESSAL OF COMPLAINTS AND GRIEVANCES GUIDANCE TO CUSTOMERS AND DISCLOSURE OF 41 INFORMATION 33 GENERAL 43 ANNEXURE I 44 ANNEXURE - II 46

4 1) PREAMBLE: DOMESTIC DEPOSIT POLICY ) 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. Therefore 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, The Reserve Bank of India is empowered to issue directives / advises on interest rates on deposits and other aspects regarding conduct of deposit accounts from time to time. With liberalisation in the financial system and deregulation of interest rates on term deposits, 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 accounts. This document recognizes the rights of depositors and aims at dissemination of information with regard to various aspects of acceptance of deposit from members of public, conduct and operations of various deposits accounts, payment of interest on various deposit accounts, closure of deposit accounts, method of settlement of claims of deceased depositors etc., for the knowledge and benefit of customers. 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. 1.3) While adopting this policy, the Bank reiterates its commitments to individual customers outlined in our "Code of Bank's Commitments to Customers", which is based on the model Code, prepared by Banking Codes and Standards Board of India (BCSBI) and as approved by the Board. 1.4) 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 are issued from time to time by the Bank. 2) TYPES OF DEPOSIT ACCOUNTS: While various deposit products offered by the Bank are assigned different names, they can be categorized broadly into Savings, Current and Term Deposits. Definitions of major deposits schemes are as under: DEMAND DEPOSITS It means a deposit received by the Bank, which is withdrawable on demand. (Current and Savings Account Deposits are Demand Deposits) "Savings Deposits" means a form of interest bearing demand deposit which is a deposit account whether designated as Savings Account, Savings Bank Account, Savings Deposit Account, Basic Savings Bank Deposit Account (BSBDA) or other account by whatever name called which is subject to the restrictions as to the number of withdrawals as also the amounts of withdrawals permitted by the bank during any specified period.

5 2.1.3 "Current Account" means a form of non-interest bearing demand deposit where from withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount and will also include other deposit accounts which are neither Savings Deposit nor Term Deposit like margin deposits where no interest is payable Overdue Term Deposits : Term Deposits on maturity if not renewed or encashed, will be treated as Overdue Term Deposit and it will be classified as Demand Deposits 2.2 TIME DEPOSITS : "Term Deposit" means an interest bearing deposit received by the Bank for a fixed period generally withdrawable only after the expiry of the fixed period and include deposits such as Recurring /Cumulative /Annuity /Reinvestment deposits and Cash Certificates like Fixed Deposits, Samruddhi Deposits, Recurring Deposits, Loan linked Recurring Deposits / insurance linked R.D., Dena Freedom Deposit, Cash Certificates and Dena Savifix. Dena Savifix Deposit Scheme offers the facility of Sweep-Out and Sweep-In of the deposits. Ceiling for conversion of units to Term Deposit and Maximum period are decided by the Bank from time to time. Penalty for premature withdrawal is not applicable for this scheme. Rate of interest applicable under Dena Savifix will be same as card rates on Term deposits, on the date of conversion in units from Savings Account to Term Deposits. Term deposit is available for a minimum period of 7 days and for a maximum period of 10 years. However, as per mandate of the customer, Term Deposit can be renewed on the date of maturity for the period mentioned in the mandate at the rate prevalent on the date of maturity. Bank may face situations where the locker-hirer neither operates the locker nor pays rent. To ensure prompt payment of safe deposit locker, rent at the time of allotment, Bank will obtain a security deposit [Dena Safe Deposit Locker Rent Care Deposits Scheme] which would cover three years locker rent and charges for breaking open the locker in case of an eventuality. Premature withdrawal of Term Deposit by the Customer is not allowed till the surrender of Locker. However, bank shall not insist on such Fixed Deposit from the existing locker-hirers. (RBI Master Circular on Customer Service dated 2nd July, 2012 Point No ) (i) Bulk Deposit means : (i) Single Rupee term deposits of Rupees one crore and above for Scheduled Commercial Banks other than Regional Rural banks (ii) Single Rupee term deposits of Rupees fifteen lakhs and above for RRBs Non- availability of Premature withdrawal option As per RBI notification, Banks shall have the freedom to offer term deposits without premature withdrawal option. Provided that all term deposits accepted from individuals (held singly or jointly) for amount of Rupees fifteen lakh and below shall have prematurewithdrawal-facility. Bank has introduced Dena Earn More scheme with these features.

6 3) ACCOUNT OPENING AND OPERATION OF DEPOSIT ACCOUNTS: 3.1 OPENING OF ACCOUNT The Bank, before opening any deposit account, will carry out due diligence as required under "Know Your Customer" (KYC) guidelines issued by RBI and such other norms or procedures adopted by the Bank from time to time. 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. The primary document through which customer relationship is established is Account opening Form ( AOF).The account opening forms, copy of BCSBI code and other related material would be provided to the prospective depositor by the Bank. Our Account opening Form comprises of two parts (i) Customer Relationship Form (ii) Customer Profile Form. Every field / column provided in the Customer relationship Form has to be mandatorily filled in by Customer/s. Names of the account holder/s should be written legibly. The customer Profile Form provides a wealth of information on the customers that facilitates mitigation of money laundering Risk. Getting all the information properly filled up by customer will, therefore enable proper implementation of KYC/AML/CFT framework. Beside it also will enable the Bank to decide on products & Services of the Bank that could be offered to a Customer. A customer is required to fill up the Customer Profile Form only once. If the same customer opens another account in the Bank, customer ID will be same and customer to fill only Customer Relationship form. These Forms contain details of information to be furnished and documents to be produced for verification like PAN No. or Form 60 to avail Tax benefit and some other records / proof like Ration card, Passport etc. Bank official opening the account has to explain the procedural formalities and provide necessary clarifications sought by the prospective depositor when he / she approaches for opening a deposit account. The depositor may seek further information / clarifications regarding any of these items at the time of opening the account from Bank s officials. 3.2 SMALL DEPOSIT ACCOUNT: in view of RBI guidelines, Circular No. 77/ / dated 27th January 2011 our Bank has launched a scheme ( Dena Small Deposit Scheme ) which will render banking services belonging to Low income group in Rural, semi Urban and urban area who are not able to produce identity proof i.e. Passport, Pan Card, Voters Card, driving license and Residential Proof i.e. Telephone Bill, Bank account, Letter from any recongnised Public Authority. This account can be opened with initial Deposit of Rs. 10/- by i) An individual in his / her name ii) An individual jointly with other person/s Iii) A Guardian on behalf of Minor

7 For these accounts KYC norms are relaxed as under: The following are valid KYC Document for these accounts: 1. Job card issued by NREGA duly signed by an officer of the State Government. 2. The letter issued by the unique identification Authority of India details of Name, Address and Aadhaar Number. 3. Small accounts to be opened on production of a self attested photograph and affixation of a signature or Thumb print on the account opening Form. Balance in the account can go to Zero. There will not be any minimum Balance charges levied to this account but some restrictions on transactions are to be followed. A) The aggregate of all credits in financial year does not exceeds Rs. One lac. B) The aggregate of all withdrawals and Transfers in a month does not exceed Rs.Ten Thousand. C) The Balance at any point of time does not exceed Rs. Fifty Thousand. D) Generally no Debit/ ATM Card to be issued under the scheme. However, if the account holder possesses a PAN card, the Branch Manager may consider issuing a Debit / ATM card depending upon the merit of Customer. E) Foreign Remittances shall not be allowed to be credited into Small Account unless identity of customer is fully established through the production of KYC documents. F) Small account shall remain operational initially for a period of Twelve Months and thereafter for a further period of Twelve Months if the account holder provides evidence of having applied for any of the KYC documents. The entire relaxation provision to be reviewed in respect of the said account after Twenty four months. 3.3 ZERO BALANCE ACCOUNT Zero Balance Salary accounts at the discretion of the Bank are opened for Corporate employees on case to case basis; such arrangements are to be approved by the competent authority i.e. Zonal Manager. Zonal Managers are advised to evaluate the various aspects involved in opening of such accounts such as Know Your Customer (KYC) norms, the cost benefit analysis etc. 3.4 Basic Savings Bank Deposit Account (BSBDA) With a view to doing away with the stigma associated with the nomenclature of no-frills account and making the basic banking facilities available in a more uniform manner across banking system. Hence the guidelines are modified on opening of basic banking no-frills accounts, as under: A Basic Savings Bank Deposit Account will offer following minimum common facilities to customers: i. The Basic Savings Bank Deposit Account shall be considered a normal banking service available to all. ii. This account shall not have the requirement of any minimum balance.

8 iii. The services available in the account will include deposit and withdrawal of cash at bank branch as well as ATMs; receipt/credit of money through electronic payment channels or by means of deposit/collection of cheques drawn by Central/State Government Agencies and Departments; iv. While there will be no limit on the number of deposits that can be made in a month, account holders will be allowed a maximum of four withdrawals in a month, including ATM withdrawals; and v. Facility of ATM card or ATM-cum-Debit Card; The above facilities will be provided without any charges. Further, no charge will be levied for non-operation/activation of in-operative Basic Savings Bank Account. The Basic Savings Bank Deposit Account would be subject to RBI instructions on Know Your Customer (KYC) / Anti-Money Laundering (AML) for opening of bank accounts issued from time to time. The Account holders of Basic Savings Bank Account will not be eligible for opening any other savings bank deposit account in the bank. If a customer has any other existing savings bank deposit account in the bank, he/she will be required to close it within 30 days from the date of opening a Basic Savings Bank Account. ( Guidelines issued by MOF, DFS, GOI vide F. No.25/9/2012-BO.II dated 17th August, 2012 ) BSBDA FREQUENTLY ASKED QUESTIONS In view of several queries received in connection with BSBDAs, a list of FAQs was issued. These FAQs are furnished in Annex - II. 3.5 MINIMUM BALANCE & PENAL CHARGES For deposit products like Savings Bank account and Current Deposit account, the Bank will normally stipulate certain minimum balances to be maintained as part of 'terms and conditions' governing operations of such accounts. Failure to maintain minimum balance in the account will attract levy of charges as specified by the Bank. No penal charges shall be levied for non-maintenance of minimum balances in any inoperative account. At present the minimum balance and charges for not maintaining minimum balance are as follows: Minimum Balance Savings Bank A/c with cheque book facility Minimum Balance Savings A/c cheque facility Bank without book Quarterly Average Balance in Branches at : Metro/Urban Rural/ Semi Urban 1000/- 500/- NIL Quarterly Average Balance in Branches at : Metro/Urban Rs..1000/- Pensioner/Staff/ Staff Ex- Semi Urban/ Rural/ Pensioner/ Staff/Ex-Staff NIL

9 Charges for not maintaining minimum quarterly average balance Saving Bank a/c No charges for Semi Urban & Rural Centers No charges for Inoperative Account For Metro & Urban Centers 1). At the end of each quarter during the Financial Year, the calculation of Quarterly Average Balance (QAB) will be calculated by the Finacle System and wherever the shortfall will be observed, an SMS will be sent on the latest registered mobile no. of the customer wherein 30 days notice will be issued to the Account Holder to restore the minimum QAB in the account. A letter to this effect to be generated by system and to be sent to the customer by respective branch on the last working day of the quarter itself. After the expiry of 30 days i.e. at the end of next month of the preceding quarter, system will calculate the average balance of 4 months i.e. previous quarter plus current month and it will be verified whether the minimum QAB is restored in the accounts identified during the previous quarter or not. If not then the minimum balance charges will be levied as mentioned below. 2). If the minimum QAB is not restored, the following charges will be levied proportionate to the shortfall in the minimum QAB i.e. Required Minimum QAB Calculated QAB as of last date of the respective quarter (3 months) = Shortfall in QAB At the time of debiting minimum balance charges, customer will be informed by sending SMS intimating the same and further notifying him/her the shortfall in QAB to be made good by him for prevention of further levying of minimum balance charges in next quarter. Shortfall in Average Balance Upto 25% More than 25% to 50% More than 50% to 75% Slab of Charges 25% of prescribed min bal charges + S.T as applicable 50% of prescribed min bal charges+ S.T as applicable 75% of prescribed min bal charges+ S.T as applicable Charges for not maintaining minimum balance in Basic Saving Account / NREGA/ Senior Citizens Savings A/c More than 75% Full charges+ S.T as applicable NIL

10 For Savings Bank account, the Bank may also place restrictions on number of transactions for any given period. The rules on Savings Bank Account operation are displayed on the Bank's website. 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, availability of facilities such as Direct debit /credit, standing instructions etc. and schedule of charges for various services will be informed to the prospective depositor while opening the account. Any changes in the terms and conditions governing operation of the account will be implemented, normally, after giving due notice to the customers Levy of Penal Charges on Non-Maintenance of Minimum balance in savings bank accounts While levying charges for non-maintenance of minimum balance in savings bank accounts, banks shall adhere to the following additional guidelines: (i) In the event of a default in maintenance of minimum balance / average minimum balance as agreed to between the bank and customer, the bank should notify the customer clearly by SMS / / letter etc. that in the event of the minimum balance not being restored in the account within a month from the date of notice, penal charges will be applicable. (ii) In case the minimum balance is not restored within a reasonable period, which shall not be less than one month from the date of notice of shortfall, penal charges may be recovered under intimation to the account holder. (iii) The policy on penal charges to be so levied may be decided with the approval of Board of the bank. (iv) The penal charges should be directly proportionate to the extent of shortfall observed. In other words, the charges should be a fixed percentage levied on the amount of difference between the actual balance maintained and the minimum balance as agreed upon at the time of opening of account. A suitable slab structure for recovery of charges may be finalized. (v) It should be ensured that such penal charges are reasonable and not out of line with the average cost of providing the services. (vi) It should be ensured that the balance in the savings account does not turn into negative balance solely on account of levy of charges for non-maintenance of minimum balance. These guidelines should be brought to the notice of all customers apart from being disclosed on the bank's website. (RBI Notification No. DBR.Dir.BC.No.47/ / dated November 20, 2014) 3.6 Cash withdrawal and deposit at non base branches Cash withdrawal at Non-base branches is permitted up to Rs.50,000/- only. The cash payment will be made to account holder only, on production of his identity proof, and not to any Third party. The cash withdrawal charges are as per Tariff of charges mentioned in Service charges circular. All the Branches should invariably accept cash over the counters from all their customers who desire to deposit cash at the counters.

11 4. WHO CAN OPEN THE ACCOUNT Details with regard to opening of Accounts are furnished in KYC Policy / Circulars on RBI Master Directions. However, in nutshell, they are as under : Savings Bank Accounts can be opened for eligible person / persons and certain organizations / agencies (as advised by Reserve Bank of India from time to time). Current Accounts can be opened by individuals / partnership firms / private and public limited companies / HUFs / Specified Associates / Societies / Trusts etc. Term Deposit Accounts can be opened by individuals / partnership firms / private and public limited companies / HUFs / Specified Associates / Societies / Trusts etc. Term Deposits are accepted for a minimum period of 7 days and for a maximum period of 10 years. Certain Organizations notified by RBI / Government of India from time to time will not be permitted to open any deposit account. 4.1 Extra precautions to be taken in the opening of the following types of accounts The following types of accounts would require higher account opening documentation and due diligence to be carried out at the time of opening new accounts. a) Trust accounts - would stricter documentation and due diligence to be exercised as given in the KYC documentation details in the KYC Master Directions b) Non face to face customers - Customers with whom the Bank has not had direct interaction (with the prime holder of an individual account or one of the signatories of a non individual account) at the time of opening the account would require stricter documentation as per KYC policy. c) Correspondent Banking - Transactions conducted through correspondent relationship need to be managed taking a risk based approach. Know Your Correspondent procedures should be established to ascertain whether the correspondent Bank or counter party is itself regulated for money laundering prevention and, if so, whether the correspondent is required to verify the identity of their customers to FATE standards. Where the correspondent Bank do not follow FATE guidelines, additional due diligence should be exercised. d) Fiduciary Accounts - Bank may exercise due care at the time of opening fiduciary accounts opened by professional intermediaries.

12 4.2 KYC requirements and facilitating opening / operation of accounts of the bank customers Branches should obtain and keep on record photographs of all depositors/account holders in respect of accounts opened by them. (i) (ii) (iii) (iv) (v) The branches should not insist on photographs in case of accounts of staff members only (Single/Joint). The branches should obtain photographs of all persons authorised to operate the accounts viz., Savings Bank and Current Accounts without exception. The banks should also obtain photographs of the ' Pardanishin' women. The branches should not ordinarily insist on the presence of account holder for making cash withdrawals in case of 'self' or 'bearer' cheques unless the circumstances so warrant. The banks should pay 'self' or 'bearer' cheques taking usual precautions. Photographs cannot be a substitute for specimen signatures. Fresh photographs need not be obtained when an additional account is desired to be opened by the account holder. In the case of operative accounts, viz. Savings Bank and Current accounts, photographs of all persons authorised to operate them should be obtained. In case of other deposits, viz., Fixed, Recurring, Cumulative, etc., photographs of all depositors in whose names the deposit receipt stands may be obtained except in the case of deposits in the name of minors where guardians' photographs should be obtained. The bank s welcome kit should contain Copy of Service Charges, BCSBI Code and Most Important Terms & Conditions Opening of accounts by close relative, such as parents, son, daughter, spouse etc. The Bank has been advised that in cases of close relatives e.g. wife, son, daughter and parents etc. who live with their husband, father/mother, and son as the case may be, the banks can obtain an identity document and utility bill of the relative with whom the prospective customer is living along with a declaration from the relative that the said person (prospective customer) wanting to open an account is a relative and is staying with him/her. Banks can use any supplementary evidence such as letter received through post for further verification of the address. Bank should keep in mind the spirit of instructions issued and avoid undue hardships to individuals who are, otherwise, classified as low-risk customers. It is emphasised that branches should ensure that close relatives, such as, parents, son, daughter, spouse, etc. are able to open accounts without any interruption in accordance with the RBI/Bank s guidelines

13 Full operational facilities in joint account with spouse staying at separate stations Bank is aware that in the existing institutional and regulatory framework, the husband and wife both can access most of the normal banking services while staying at different places by using ATM/Debit Cards and Mobile Banking services for cash withdrawals, purchases/ merchandising services, etc. and most of the other services, such as, purchase of Drafts, transfer of funds, utility bill payments etc. by using On-line banking facilities many of such facilities are already extended to account holders. Bank should extend full operational facilities to the spouse staying at different stations, if one of them i.e. husband or wife is staying at home-branch station with true spirit Account portability/opening of new bank accounts In this regard, branches / field functionaries are aware that the account portability to the customers is already provided where the customer desires to shift his/her account to another branch of our Bank where he/she need not submit new KYC documents again. This facility is free of cost and the customer can retain the same account number. It is noticed that opening of fresh accounts is insisted when customers approach them for transferring their account from one branch to another branch of our bank. Such insistence of opening fresh account or making the customer undergo full KYC process again causes inconvenience to them resulting in poor customer service. It is not reasonable as all branches are now under CBS platform and KYC records of a particular customer can be accessed by any branch of the bank. KYC once done by transferor branch shall be valid for transfer of the account within the bank as long as full KYC has been done for the concerned account. The customer can transfer his account from one branch to another branch without restrictions. In order to comply with KYC requirements of correct address of the person, fresh address proof may be obtained from him / her upon such transfer by the transferee branch within six months of transfer. It may be noted that instructions regarding periodical updation of customer identification data (including photograph/s) is to be complied with after the account is opened. The Periodic updation shall be carried out at least once in every two years for high risk customers, once in every eight years for medium risk customers and once in every ten years for low risk customers Indicative List of High / Medium risk customers is given in Bank s KYC Policy in detail. The records pertaining to the identification of the customer and his address are preserved properly for at least FIVE years after the business relationship is ended. The identification records and transaction data should be made available to the competent authorities upon their request. (RBI Master Direction DBR.AML.BC.No.81/ / dated (Updated as on ))

14 Accounts of migratory workers: Detailed guidelines regarding KYC norms for accounts of persons belonging to low income group vide circular no.10/01/ dated states that such accounts can be opened on the basis of introduction of the existing account holder whose account with the bank is at least six months old, KYC complied and shows satisfactory transaction. Branches are advised to ensure the guidelines are truly implemented when prospective low income group person is required to open account. Further, Ministry of Finance vide their above notification has now directed as under : Banks are advised to open accounts of such migratory workers on production of a proof of permanent place of residence also, without insisting on production of proof of residence in the locality of the bank branch. The Branch opening such an account shall get the details of the permanent place of residence verified through an online communication to the nearest Branch of the place of permanent residence within thirty days of opening of the account. During this intervening period of thirty days, the Branch shall allow the customer limited operations to enable him/her meet the basic day-to-day requirements of funds. ( H.O. Circular No. 224/47/ dated ) Rights of Transgender Persons Changes in bank forms/ applications etc. As per the judgment dated April 15, 2014 of the Supreme Court in the case of National Legal Services Authority v. Union of India and others [AIR 2014 SC 1863: (2014) 5 SCC 438] on treating all transgender persons as third gender, the Supreme Courte upheld transgender persons right to decide their self-identified gender and directed the Centre and State Government to grant legal recognition of their gender identity such as male, female or as third gender. Accordingly, Bank has included third gender in all forms/applications etc. prescribed by the Reserve Bank or the banks themselves, wherein any gender classification is envisaged. 4.3 Customer Acceptance Policy & Customer Identification Procedure: Customer Acceptance Policy The Branches will ensure to follow the Customer Acceptance Policy of the Bank circulated by the Compliance Department in line with the guidelines issued by RBI from time to time. Latest such guidelines are issued vide HO Circular No.396/11/ dated 14 th March Customer Identification Procedure Bank shall undertake the process of identification of customers in line with guidelines issued by RBI from time to time and circulated by the compliance department of the Bank. Latest such guidelines are issued vide HO Circular No.396/11/ dated 14 th March 2016.

15 4.4 BRANCHES TO SEND THANKS / WELCOME LETTER TO ALL THE NEW CUSTOMERS AFTER OPENING OF ACCOUNT TO COMPLY WITH KYC NORMS Banker has to observe a number of rules/precautions because opening an account would mean entering into a contract with the person(s) willing to open an account. This involves certain responsibilities and obligations - legal and customary - which it must discharge with reasonable care to protect its own interest as well as to maintain the faith of the general public. Hence all the branches should send Thanks/ Welcome letter to the account holder at the address given in the account opening form (Not to handover to the customer personally) for opening the account with the branch. This procedure will confirm the correctness of the address given by the customer and also the bonafides of the customer. 4.5 Non insistence for Introduction If the KYC norms are strictly complied, then introduction will no more be mandatory requirement and the account can be opened without introduction. However, it is reiterated that the KYC norms have to be strictly adhered to and there shall not be any compromise on KYC Compliance. Introduction will be continued to be obtained, where relaxed KYC norms are applicable like in case of Dena Small Deposit Account. 5 TYPE OF ACCOUNTS OTHER THAN USUAL DEMAND & TIME DEPOSITS : 5.1 MINORS' ACCOUNTS: A minor can open Savings Bank account with initial deposit of Rs. 10/- and can maintain the account with Zero balance. Birth date of minor is required to be noted on Bank s account opening form at the time of opening account. The minimum balance charges will not be levied to the account. Bank will issue guideline regarding any changes from time to time. The account can be operated by the natural guardian or by minor him / her, if he / she is above the age of 10 years. The account can also be opened jointly. Accounts singly operated by Minor will not be provided with cheque book facility. On attaining majority, the erstwhile minor should confirm to the Bank of the balance in his / her account. If the account is otherwise to be operated by the natural guardian - recent photographs, identity proof, address proof and fresh specimen signature of erstwhile minor duly verified by the natural guardian would be obtained and kept on record by the Bank for future operations. Savings Bank / Term Deposit account can also be opened by a minor jointly with natural guardian or with Mother as the guardian.

16 5.2.1.OPENING OF ACCOUNT OF SALARIED PERSON : For Opening of accounts of Salaried persons branches should not only rely on a certificate issued by the employer as the only KYC document account for purpose of certification of Identity as well as Address Proof. Such practice is open to misuse and fraught with risk. Hence branches need to rely on certification only from the corporate and other reputed entities and should be aware of the competent authority designated by employer to issue such certificate / letter and attested Salary slip along with one of the officially valid document i.e. PAN Card, Voters Identity card and utility bill (electricity bill/telephone bill). These accounts can be opened and maintained at Zero Balance. The Account holder will be allowed to maintain the account at zero balance as long as he/ she is associated with the organization. In case of retirement or switch over to other organization the account will be treated as Regular Savings Account where in he/ she will have to maintain required minimum balance OPENING OF CORPORATE SALARY ACCOUNT : With an objective to enhance our Low Cost Deposit clientele base and to increase CASA Deposits, a new Saving Bank Account Scheme named as Corporate Salary Account has been designed. The targeted clientele for the scheme are employees working in Central / State Government/ PSUs/ Reputed Public Limited Companies/ MNCs/ Reputed Educational Institutions (Govt. recognized/ aided Schools/ Colleges/ Universities/ Research Institutes who have more disposable income and capable of maintaining large balance in Savings Bank Account. The main feature of the scheme is availability of an overdraft upto two months net salary of the account holder which shall enable them to meet their urgent social obligation/requirement such as medical/educational expenses etc. The account can be opened and maintained at Zero Balance. The account holder will be allowed to maintain zero balance as long as he/she is associated with that organization. In case of Retirement, switch over to other organization, the Account will be treated as Regular Savings Bank Account wherein he/she will have to maintain the required minimum balance charges Opening of Zero Balance Basic Accounts of the students To ease the hardships faced by students the zero Balance Basic Accounts shall be opened expeditiously to facilitate direct transfer of scholarship amounts into the bank accounts of the concerned students under the State Government Scheme for Post Matric Scholarship for Scheduled Caste and other students. Zero Balance accounts for students from Minority communities or other disadvantaged groups shall also be opened when they approach banks for availing various scholarships or other benefits offered by the Government. This facility shall be extended to students from Scheduled Castes, Scheduled Tribes, Minority Communities or other backward classes also. Savings or Current account should be treated as inoperative/dormant if there are no transactions in the account for over a period of two years and the safeguards to be adopted in dealing with such accounts.

17 State and Central Governments have expressed difficulties in crediting cheques / Direct Benefit Transfer/Electronic Benefit Transfer/Scholarships for students, Zero Balance Accounts, etc. into accounts opened for the beneficiaries under various Central/State Government schemes but had been classified as dormant/inoperative due to non-operation of the account for over two years. Different product code should be allotted in CBS to all such accounts opened by branches so that the stipulation of inoperative/dormant account due to nonoperation does not apply while crediting proceeds. In order to reduce the risk of fraud etc., in such accounts, while allowing operations in these accounts, due diligence should be exercised by ensuring the genuineness of transactions, verification of signature and identity, etc. However, it has to be ensured that the customer is not inconvenienced in any manner Opening of Bank accounts of Foreign Students: (a) Banks shall, at their option, open a Non Resident Ordinary (NRO) bank account of a foreign student on the basis of his/her passport (with visa & immigration endorsement) bearing the proof of identity and address in the home country together with a photograph and a letter offering admission from the educational institution in India. i. Provided that a declaration about the local address shall be obtained within a period of 30 days of opening the account and the said local address is verified. ii. Provided further that pending the verification of address, the account shall be operated with a condition of allowing foreign remittances not exceeding USD 1,000 or equivalent into the account and a cap of rupees fifty thousand on aggregate in the same, during the 30-day period. (b) The account shall be treated as a normal NRO account, and shall be operated in terms of Reserve Bank of India s instructions on Non-Resident Ordinary Rupee (NRO) Account, and the provisions of FEMA (c) Students with Pakistani nationality shall require prior approval of the Reserve Bank for opening the account. ( RBI- Master Direction KYC - DBR.AML.BC.No.81/ / dated (Updated as on ) 5.3 OPENING OF SAVING ACCOUNT JOINTLY WITH NRI RBI vide circular No. RBI/ /173 dated September 15, 2011, stated that individual resident in India may be permitted to include Non Resident close relative(s), (relatives as defined in section 6 of Companies Act, 1956), as a joint holder(s) in their resident Bank accounts on former or survivor basis. However, such non resident Indian close relatives shall not be eligible to operate the account during the lifetime of the resident account holder.

18 5.4 ACCOUNT OF ILLITERATE / BLIND PERSON The Bank may at its discretion, open Deposit Accounts other than Current Account of Illiterate / Blind persons. The account of such person may be opened provided he / she call on the Bank personally along with a witness who is known to both the depositor and the Bank. Normally, no cheque book facility is provided for such Savings Bank account. At the time of withdrawal / repayment of deposit amount and / or payment of 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 Branch shall explain the need for proper care and safe keeping of the pass book, etc. given to the account holder. The Bank official shall explain the 'terms and conditions' governing the account to the illiterate. 5.5 ACCOUNT OF VISUALLY IMPAIRED PERSONS The Bank to open Deposit Accounts other than Current Account of visually impaired person. The account of such person may be opened provided he / she call on the Branch personally along with a witness who is known to both the depositor and the Bank. However, Branch shall ensure that all the banking facilities such as cheque book facility including ATM facility, Net banking facility, locker facility, retail loans, credit cards etc. are invariably offered to the visually challenged without any discrimination. At the time of withdrawal / repayment of deposit amount and / or payment of 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 to explain the need for proper care and safe keeping of the pass book, cheque book etc. given to the account holder. The Branch official to explain the 'terms and conditions' governing the account to the Visually Impaired Persons. Branches to render all possible assistance to the visually challenged for availing the various banking facilities. In addition to the above, magnifying glasses to be provided in all bank branches for the use of persons with low vision, wherever they require for carrying out banking transactions with ease. The branches to display at a prominent place notice about the availability of magnifying glasses and other facilities available for persons with disabilities. 5.6 OPENING OF A BANK ACCOUNT OF A PERSON WHO HAS LOST BOTH HIS/ HER HANDS AND COULD NOT SIGN THE CHEQUE / WITHDRAWAL FORM In terms of the General Clauses Act, the term Sign with its grammatical variations and cognate expressions, shall with reference to a person who is unable to write his name, include mark with its grammatical variations and cognate expressions. The Supreme Court has held in AIR 1950 Supreme Court, 265 that there must be physical contact between the person who is to sign and the signature can be by means of a mark. This mark can be placed by the person in any manner. It could be the toe impression, as suggested. It can be by means of mark which anybody can put on behalf of the person who has to sign, the mark being put by an instrument which has had a physical contact with the person who has to sign.

19 5.7 OPENING OF ACCOUNT OF THE DISABLED PERSONS WITH AUTISM, CEREBRAL PALSY, MENTAL RETARDATION AND MULTIPLE DISABILITIES The following guidelines would be applicable for the purpose of opening / operating bank accounts of the above persons: The Mental Health Act, 1987 provides a law relating to the treatment and care of mentally ill persons and to make better provision with respect to their property and affairs. According to the said Act, mentally ill person means a person who is in need of treatment by reason of any mental disorder other than mental retardation. Sections 53 and 54 of this Act provide for the appointment of guardians for mentally ill persons and in certain cases, managers in respect of their property. The prescribed appointing authorities are the district courts and collectors of districts under the Mental Health Act, The National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 provides a law relating to certain specified disabilities. Clause (j) of Section 2 of that Act defines a person with disability to mean a person suffering from any of the conditions relating to autism, cerebral palsy, mental retardation or a combination of any two or more of such conditions and includes a person suffering from severe multiple disabilities. This Act empowers a Local Level Committee to appoint a guardian, to a person with disabilities, who shall have the care of the person and property of the disabled person. Banks are advised to take note of the legal position stated above and may rely on and be guided by the orders/certificates issued by the competent authority, under the respective Acts, appointing guardians/managers for the purposes of opening/operating bank accounts. In case of doubt, care may be taken to obtain proper legal advice. Branches should give proper guidance to their customers so that the guardians/managers of the disabled persons do not face any difficulties in this regard. ( Master Direction DBR.AML.BC.No.81/ / dated (Updated as on July 08, 2016)) Need for Bank Branches / ATMs to be made accessible to persons with disabilities. Banks will take appropriate steps, including providing of ramps at the entrance of the bank branches, wherever feasible, so that the persons with disabilities/wheel chair users can enter bank branches and conduct business without difficulty. 5.8 ACCOUNTS OF MARRIED WOMEN In order to facilitate newly married women in opening new account / transferring or getting the pre marital name and address changed is permitted. Bank can accept any valid document which provides customer information to their satisfaction as part of implementation of customer identification procedure in the absence of documents prescribed there in. Bank will allow the women to open the account with their maiden name adhering to KYC guidelines. Details of opening of new Account/ transferring of Account or Change in the name of existing account is furnished in KYC/ Anti Money Laundering Policy (circular No.251/06/ dated issued by Compliance Dept)

20 5.9 OPENING OF ACCOUNTS OF MINORITY COMMUNITIES : Savings accounts of Minority communities are to be opened adhering to KYC guidelines without any hassle OPENING OF CURRENT ACCOUNTS NEED FOR DISCIPLINE Accounts of Proprietary Concerns 1. For opening an account in the name of a sole proprietary firm, a certified copy of an OVD as mentioned at Section 3(a) (vi) of Chapter I, containing details of identity and address of the individual (proprietor) shall be obtained. 2. In addition to the above, any two of the following documents as a proof of business/ activity in the name of the proprietary firm shall also be obtained: a. Registration certificate b. Certificate/licence issued by the municipal authorities under Shop and Establishment Act. c. Sales and income tax returns. d. CST/VAT certificate. e. Certificate/registration document issued by Sales Tax/Service Tax/Professional Tax authorities. f. Licence/certificate of practice issued in the name of the proprietary concern by any professional body incorporated under a statute. g. Complete Income Tax Return (not just the acknowledgement) in the name of the sole proprietor where the firm's income is reflected, duly authenticated/acknowledged by the Income Tax authorities. h. Utility bills such as electricity, water, and landline telephone bills. In cases where the Branches are satisfied that it is not possible to furnish two such documents, Branches may, at their discretion, accept only one of those documents as proof of business /activity. Provided Branches undertake contact point verification and collect such other information and clarification as would be required to establish the existence of such firm, and shall confirm and satisfy itself that the business activity has been verified from the address of the proprietary concern. RBI has been receiving complaints against banks for opening current account without following due diligence as specified. RBI has set up a Central Repository of Information on Large Credits (CRILC) to collect, store, and disseminate data on all borrowers credit exposures. Banks / Financial Institutions are required to report information to CRILC. Keeping in view the importance of credit discipline, especially for reduction in NPA level in banks, Branches are advised to make use of the information available in CRILC and not limit their due diligence to seeking NOC from the bank with whom the customer is supposed to be enjoying the credit facilities as per his declaration. Branches should verify from the data available in CRILC database whether the customer is availing of credit facility from another bank. Further branches should also seek No Objection Certificate from the drawee bank where the initial deposit to current account is made by way of a cheque.