Comprehensive Deposit Policy July 2017
Contents 1. Preamble... 3 2. Account Opening... 3 3. Types of Deposit Accounts... 3 3.1 Opening / Operation of Deposit Accounts... 4 3.1.1 Opening of Deposit Account... 4 3.1.2 Operation of Deposit Accounts... 5 4. Interest Payments... 9 5. Minors Accounts... 10 6. Addition or deletion of the name/s of joint account holders... 10 7. Customer information... 10 7.1. Secrecy of customer s accounts... 10 7.2. Premature withdrawal of term deposit... 11 7.3. Premature renewal of term deposit... 11 7.4. Renewal of overdue term deposits... 11 7.5. Advances against deposits... 11 7.6. Settlement of dues in deceased deposit account... 11 7.7. Interest payable on term deposit in deceased account... 12 7.8. Settlement of claim in case of missing persons... 12 7.9. Insurance Cover for Deposits... 13 7.10. Stop Payment Facility... 13 7.11. Dormant Accounts... 13 7.12. Redressal of complaints and grievances... 13 8. Policy Revision & References... 13 2
1. Preamble This Comprehensive Deposit Policy exhibits bank s commitment to the greater transparency and for providing better customer services. The ultimate objective of the policy is to make the customers fully aware about their rights and duties as also to provide them with the services that they are rightfully entitled to receive without demand. Through this policy, the bank intends to make aware its customers that the bank has always recognised the rights of the common depositors. Further, this policy is framed in compliance with Reserve Bank of India (RBI) instructions issued to banks on Customer Service from time to time. This policy outlines the guiding principles in respect of various deposit products and banking related services offered by Emirates NBD India. It emphasises on 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. 2. 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 is best suited to them, based on their requirements and applicable guidelines. The Bank will, prior to opening an account, require documentation and information as prescribed by the "Know Your Customer" (KYC) guidelines issued by Reserve Bank of India (RBI) from time to time. If the decision to open an account of a prospective depositor requires clearance at a higher level and if its likely to result in delay, the prospective customer would be informed and the final decision of the Bank would be conveyed at the earliest. 3. Types of Deposit Accounts The deposit products that are offered by the bank are as follows: - I. Demand deposits means a deposit received by the Bank which can be withdrawn on demand; II. III. IV. 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; Term deposit means a deposit received by the Bank for a fixed period withdrawable only after the expiry of the fixed period and includes deposits such as Recurring / Double Benefit Deposits / Short terms Deposits / Fixed Deposits/ Monthly Income Certificate / Quarterly Income Certificate, etc. Notice Deposit means term deposit for specific period but withdrawable on giving at least one complete banking days notice; 3
V. Current Account means a form of demand deposit wherefrom withdrawals are allowed for 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; 3.1 Opening / Operation of Deposit Accounts 3.1.1 Opening of Deposit Account While opening deposit accounts, the bank would generally follow RBI instructions on KYC/AML and or such other norms or procedures as per the Customer Acceptance Policy of the bank. The due diligence process, while opening a deposit account will involve satisfying about the identity of the person, verification of address, satisfying about his occupation and source of income etc. During the process the bank would also collect Permanent Account Number (PAN) alternatively a declaration in Form No. 60 as specified under the Income Tax Act /Rules. A. The bank would provide account opening forms and other material printed in trilingual form i.e., English, Hindi and Marathi to the prospective depositor. The same would contain details of information to be furnished and documents to be produced for verification and/or record. The Bank official opening the account, would explain the procedural formalities and provide necessary clarification sought by the prospective depositor when he approaches for opening a deposit account. B. Photographs of depositors During the process the bank would obtain and keep on record photographs of all depositors / account holders in respect of accounts opened by them subject to the following clarifications: (i) Photographs will be collected for all types of deposits including fixed, recurring, cumulative, etc. The bank shall obtain photographs of all persons authorised to operate the accounts viz., Savings Bank and Current Accounts without exception. (ii) The requirement of obtaining photographs would apply to all categories of depositors, whether resident or non-resident. Only banks, Local Authorities and Government Departments (excluding public sector undertakings or quasi-government bodies) will be exempt from the requirement of photographs. (iii) The bank will not insist on photographs in case of accounts of staff members (Single/Joint). (iv) The bank would also obtain photographs of the 'Pardanishin' women. (v) The bank will obtain two copies of photographs (obtaining photocopies of driving licence/passport containing photographs in place of photographs would not suffice). (vi) The bank would 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 bank would pay 'self' or 'bearer' cheques taking usual precautions. 4
(vii) Photographs cannot be a substitute for specimen signatures. (ix) Only one set of photographs needs be obtained and separate photographs would not be insisted upon for each category of deposit. (viii) The bank would not insist upon fresh photographs, when an additional account is desired to be opened by the account holder. (ix) In the case of operative accounts, viz. Savings Bank and Current accounts, photographs of persons authorised to operate them would be obtained. In case of other deposits, viz., Fixed, Recurring, Cumulative, etc., photographs of all depositors in whose names the deposit receipt stands shall be obtained except in the case of deposits in the name of minors where guardians' photographs shall be obtained. 3.1.2 Operation of Deposit Accounts The Bank is committed to provide basic banking services to disadvantaged sections of the society. Banking services will be offered to them through Basic Saving Bank Deposit Account which will be opened with relaxed customer acceptance norms as per regulatory guidelines. In this account following minimum common facilities will be extended (i) Such account will be considered as normal banking account and services will be almost at par with other Bank accounts. (ii) This account shall not have the requirements of any minimum balance. (iii) The services available in the account will include deposit and withdrawal of cash, receipt/credit of money through electronic payment channels or by means of deposit/collection of cheques drawn by Central/State Governments agencies and Departments. (iv) While there will be no limit on the number of deposits that can be made in a month, account holders would be allowed a maximum of 4 withdrawals in a month, including ATM withdrawals. (v) The account holder would also be allowed 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 nonoperation/activation of inoperative account. In case such account is opened on the basis of simplified KYC norms, the account would additionally be treated as Small Account and would be subject to conditions stipulated for such account as indicated in Para 23 of Master Direction on KYC dated February 25, 2016 as amended from time to time. Holders of 'Basic Savings Bank Deposit Account' will not be eligible for opening any other savings bank deposit account in that bank. If a customer has any other existing savings bank deposit account in that bank, he / she will be required to close it within 30 days from the date of opening a 'Basic Savings Bank 5
Deposit Account'. A. The Bank will carry out periodical updation of KYC data, keeping in view the risk perceptions of each of its customers/depositors. B. The bank would categorise 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 not opening an account. C. Inability of an existing customer to furnish details required by the bank to fulfil statutory obligations could also result in closure of the account after due notice(s) is given to the customer. D. At the request of the depositor the bank will register the mandate / Power of Attorney given by him authorising another person to operate the account on his behalf. E. For Deposit products like Savings Bank Account and Current Deposit Account, the Bank would normally stipulate certain minimum balances to be maintained as part of terms and conditions governing operation of such accounts. Failure to maintain minimum balance in the account would attract charges as specified by the Bank from time to time. In case the minimum balance is not maintained the bank would charge penalty about which the customer would be informed at the time of opening the account. Further, in case there is a revision in the penalty charges, the bank would transparently make it known to all its depositors in advance by giving one month notices. The bank shall not levy penal charges for non-maintenance of minimum balances in any inoperative account. 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 passbook, etc. All such details, regarding terms and conditions for operation of the account and schedule of charges for various services provided would be communicated to the prospective depositor while opening the account. In case of any revision in the terms and conditions for the maintenance of these accounts, the same would be advised to the customer at least before 30 days from the date the revised charges come into effect. Further, the Bank would invariably offer the facility of issuing Pass Books (containing full address, telephone No. & MICR/IFSC codes etc. of the Branch) to its SB Account holders without charging any fees. Similarly, if the customers agree for receiving monthly statements (containing full address, telephone No. & MICR/IFSC codes etc. of the Branch) in lieu of Pass Books then also no fees would be charged by the Bank for extending this facility. F. 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) G. Current Accounts can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs / Specified Associates / Societies /Trusts, etc. The bank before opening a current account of the prospective customer would insist for a No Objection Certificate from the 6
lending bank/s if he is enjoying credit facilities (fund based or non-fund based) from the banking system. In case, no response is received by the bank from the existing banker/s within a fortnight or so, the bank would consider opening of account subject to other safeguards. In case a reply is received from the existing banker, the bank would take a view based on the information provided by the existing banker on the prospective customer. H. Term Deposits Accounts can be opened by individuals / partnership firms /Private and Public Limited Companies / HUFs/ Specified Associates / Societies / Trusts, etc. I. Deposit accounts can be opened by an individual in his/her own name (status: known as account in single name) or by more than one individual in their own names (status: known as Joint Account). Savings Bank Account can also be opened by a minor jointly with natural guardian (including mother) or a legal guardian (Status: known as Minor s Account). Minors above the age of ten are also allowed to open and operate Saving Bank Account independently. J. 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. The mandate for operating the account can be modified with the consent of all account holders. The Savings Bank Account opened by minor jointly with natural guardian /legal guardian can be operated by the guardian only. K. The joint account holders can give any of the following mandates for the disposal of balance in the above deposit accounts: i. Either or Survivor: If the account is held by two individuals say, A & B, the final balance along with interest, if applicable, will be paid to survivor on death of any one of the account holders. ii. Anyone or Survivor/s : If the account is held by more than two individuals say, A, B and C, the final balance along with interest, if applicable, will be paid to the survivor on death of any two account holders. iii. Joint account: If the account is held by the two individuals say, A & B, jointly, then both the holders will be required to sign all instructions issued to the Bank. 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. L. If fixed/term deposit accounts are opened with operating instructions Either or Survivor, the signatures of both the depositors need not be obtained for payment of the amount of the deposits on maturity. However, the signatures of both the depositors may have to be obtained, in case the deposit is to be paid before maturity. 7
M. If the operating instruction is Either or Survivor and one of the depositors expires before the maturity, no pre-payment of the fixed/term deposit may be allowed without the concurrence of the legal heirs of the deceased joint holder. However, payment can be made to the survivor on maturity. N. In case the mandate is Former or Survivor, the Former alone can operate/withdraw the matured amount of the fixed/term deposit, when both the depositors are alive. However, the signature of both the depositors may have to be obtained, in case the deposit is to be paid before maturity. If the former expires before the maturity of the fixed/term deposit, the Survivor can withdraw the deposit on maturity. Premature withdrawal would however require the consent of both the parties, when both of them are alive, and that of the surviving depositor and the legal heirs of the deceased in case of death of one of the depositors. O. In case of term/fixed deposits with Either or Survivor or Former or Survivor mandate, the Bank would allow premature withdrawal of the deposit by the surviving joint depositor on the death of the other, when there is a joint mandate from the joint depositors to this effect. Such mandate could be given by the joint deposit holders either at the time of placing term/fixed deposit or any time subsequently during the term/tenure of the deposit. Having obtained such mandate, the Bank could allow premature withdrawal of term/fixed deposits by the surviving depositor, without seeking the concurrence of the legal heirs of the deceased joint deposit holder. The bank would not levy any penal charge for such premature withdrawals. P. In the event there is an inflow of funds in the name of the deceased depositor, the Bank will consider adopting either of the following two approaches: The Bank could be authorised by the survivor(s) / nominee of a deceased account holder to open an account styled as Estate of Mr./Ms the deceased' where all the pipeline flows in the name of the deceased account holder could be allowed to be credited, provided no withdrawals are made OR The Bank could be authorised by the survivor(s) / nominee to return the pipeline flows to the remitter with the remark "Account holder deceased and to intimate the survivor(s) / nominee accordingly. The survivor(s) / nominee / legal heir(s) could then approach the remitter to effect payment through a negotiable instrument or through electronic transfer in the name of the appropriate beneficiary. Q. The term deposit account holders at the time of placing their deposits can give instructions with regard to closure of deposit account or renewal of deposit for further period on the date of maturity. In case of absence of any instructions, deposits will be treated as an auto renewal deposit and would be renewed for a similar period. The term deposit shall continue to be auto renewed till such time instructions to the contrary are received by the Bank from the customer. When a term deposit 8
is renewed on maturity, on renewed deposit, interest rate for the period specified by the depositor as applicable on the date of maturity would be applied. The Deposits will be auto renewed along with interest, if applicable. The renewal amount may not be equal to the deposit amount (principal) plus interest as the interest paid on maturity shall be subject to deductible (TDS) as specified under relevant Income Tax Act. R. Nomination facility is available on all deposit account opened by individuals, including, sole proprietorship concern. Such nomination is required to be made in the prescribed manner as required in the Banking Companies (Nomination) Rules, 1985. 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, if such mandate is given under thumb impression/s. Nomination can be made in favour of a minor. S. On receipt of nomination requests, the bank will acknowledge receipt of nomination/change in nomination/cancellation of nomination and register the nomination (including changes and cancellation) in the bank s record. It would also be properly noted down in the Saving Bank s Pass Books/Statement of Account/FDRs in case the customer is agreeable for the same. The nominee in the event of death of the depositor/s would receive the balance outstanding in the accounts as a trustee of the legal heirs. In case of a joint deposit account, in the event of the death of one of the joint account holders, the right to the deposit proceeds does not automatically devolve on the surviving joint deposit account holder, unless there is a survivorship clause. Further, the nominee/s right would arise only after the death of all the depositor/s. A separate nomination would be necessary for Saving Bank Account and Saving Bank Account opened for credit of pension amount. When the account of a customer is frozen/blocked on the orders of the enforcement authorities, the payment of interest on such account would be made keeping in view the guidelines issued by RBI in this regard. The Bank would ensure that any remittance of funds for value of INR.50,000 and above is effected by debit to the customer s account or against cheque and not against cash payment. 4. Interest Payments i) Interest shall be paid by the Bank on daily product basis on saving account at the rate specified by the Bank from time to time. ii) In terms of Reserve Bank of India directives, interest shall be calculated at quarterly intervals on term deposits and paid at the rate fixed by the Bank from time to time. In case of monthly deposit scheme, the interest shall be calculated for the quarter and paid monthly at discounted value. The interest on 9
iii) iv) term deposits is calculated by the Bank in accordance with the formulae and conventions advised by Indian Banks Association. For the purpose of payment of interest on domestic term deposits repayable in less than 3 months or where the terminal quarter is incomplete, interest would be paid proportionately for the actual number of days reckoning the year at 365 days. The rate of interest on deposits will be prominently displayed by the bank in the branch premises. Changes, if any, with regard to the deposit schemes and other related services shall also be communicated upfront and shall be prominently displayed. 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. 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 or at the time of placing the term deposits with the Bank. 5. Minors Accounts i) A minor can open Savings Bank Account and the same can be operated by the natural/legal guardian or by minor himself / herself, if he / she has is above the age of ten years. The account can also be opened jointly. ii) On attaining majority, the erstwhile minor should confirm the balance in his/her account, give a specimen signature and recent photograph, duly verified by the natural guardian to the Bank for all operational purposes. 6. Addition or deletion of the name/s of joint account holders The bank, at the request of all the joint account holders shall 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. 7. Customer information The information collected from the customers shall not be used for cross selling of services or products by the Bank, their subsidiaries and affiliates. If the Bank proposes to use such information, it would be strictly with the consent of the account holder. 7.1. Secrecy of customer s accounts The bank will 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 10
bank requires disclosure. 7.2. 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. The bank would declare its penal interest rates policy for premature withdrawal of term deposit and give reasonable publicity. 7.3. 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 on the date of deposit to the period for which the deposit remained with the bank and not at the contracted rate. Further, the Bank may levy penalty for pre-mature closure of an existing deposit at such rates as may be decided by the bank from time to time. Such penalty would be charged at the uniform rate without any discrimination. 7.4. Renewal of overdue term deposits When a term deposit is renewed on maturity, on renewed deposit interest rate for the period specified by the depositor 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, interest for the overdue period will be paid at the rates decided by the Bank from time to time. 7.5. Advances against deposits The Bank may consider request of the depositor/s for loan / overdraft facility against term deposits duly discharged by the depositor/s and on execution of necessary security documents. The Bank may also consider loan against deposit standing in the name of minor, however, a suitable declaration stating that loan is for the benefit of the minor, will require to be furnished by the depositor - applicant. 7.6. Settlement of dues in deceased deposit account i. If the depositor has registered nomination with the Bank or where the account was opened with the survivorship clause, the balance outstanding in the account of the deceased depositor will be transferred to the account of / paid to the survivors /nominee/s after the Bank satisfies about the identity 11
of the nominee, etc. The bank will follow this procedure in respect of a joint account where nomination is registered with the bank. In case where the deceased depositor had not made any nomination or for the accounts other than those styled as Either or Survivor etc., and when there are no disputes among other claimants, the Bank would settle the accounts up to a threshold limit as prescribed by the Bank from time to time against joint application and indemnity by all legal heirs or the person mandated by the legal heirs to receive the payment on their behalf, without insisting on the production of any legal documents other than the letter of indemnity up to the limit approved by the banks board. i. 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. 7.7. 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 rate obtained on the date of maturity, for the period for which the deposit remained with the Bank beyond the date of maturity; as per the Bank s policy in this regard. ii. However, in the case of death of the depositor after the date of maturity of the deposit, the bank shall pay interest at savings deposit rate prevailing on the date of maturity, which will be calculated from the date of maturity till the date of payment. iii. In case of balances lying in current account standing in the name of deceased individual depositor/sole proprietorship concern, interest would be paid from the date of death of the depositor till the date of repayment to the claimant/s at the rate applicable to savings deposit as on the date of payment. iv. As far as possible, the bank would settle the claims in respect of deceased depositor s and their payments to survivors/nominees within a period of not exceeding 15 days from the date of receipt of claim subject to production of proof of death of the depositor and suitable identification of the claimants to the bank s satisfaction. 7.8. Settlement of claim in case of missing persons The Bank may receive requests for settlements of claims in respect of persons reported missing from their nominees / legal heirs. 12
As per the provisions of Section 108 of the Indian Evidence Act 1872, presumption of death can be made only after a lapse of seven years from the date of a person being reported missing, i.e. the date when the FIR / non-traceable report was lodged. From time to time, the Bank would fix the threshold limit for settling claims without insisting for order from the competent court. For settlement of claims below the threshold limit, after a lapse of seven years from the date of a person being reported missing, i.e. the date when the FIR / non-traceable report was lodged, nominee / legal heir has to essentially submit the FIR and the non-traceable report issued by police authorities for settlement of claims and Letter of Indemnity. For any settlement beyond the threshold limit, the claimant would be required to submit the competent court order (presuming the death of the missing account holder) along with other relevant documents. 7.9. 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 details of the insurance cover in force, would be made available to the depositor. 7.10. Stop Payment Facility The Bank will accept stop payment instructions from the depositors in respect of cheques issued by them. Charges, as specified, will be recovered. 7.11. Dormant Accounts Accounts which are not operated for a period of two years will be transferred to a separate dormant / inoperative account status in the interest of the depositor as well as the Bank. The depositor can request the Bank to activate the account for operations therein. 7.12. Redressal of complaints and grievances If a Depositor has any complaint / grievance with regard to services rendered by the Bank, he/she reserves the right to approach authorities designated by the Bank for handling customer complaint / grievances. The details of the internal set up for redressal of complaints / grievances will be displayed in the branch premises. The branch officials shall provide all required information regarding procedure for lodging the complaint. In case the depositor does not get response from the Bank within 30 days from date of complaint or he is not satisfied with the response received from the Bank, he has a right to approach Banking Ombudsman appointed by the Reserve Bank of India. 8. Policy Revision & References This policy is subject to review based on the extant RBI and other related guidelines issued by them from time to time. 13