Deposit Policy Preamble One of the important functions of the Bank is to accept deposits from the public for

the purpose of lending. In fact, depositors are the major 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 ct, !"#". The Reser$e Bank of India %RBI& is empowered to issue directi$es'ad$ices on interest rates on deposits and other aspects regarding conduct of deposit accounts from time to time. (ith liberali)ation in the financial system and deregulation of interest rates, banks are now free to formulate deposit products within the broad guidelines issued by RBI. This policy document on deposits outlines the guiding principles in respect of formulation of $arious deposit products offered by the Bank and terms and conditions go$erning the conduct of the account. The document recognises the rights of depositors and aims at dissemination of information with regard to $arious aspects of acceptance of deposits from the members of the public, conduct and operations of $arious deposits accounts, payment of interest on $arious deposit accounts, closure of deposit accounts, method of disposal of deposits of deceased depositors, etc., for the benefit of customers. It is e*pected that this document will impart greater transparency in dealing with the indi$idual customers and create awareness among customers of their rights. The ultimate objecti$e is that the customer will get ser$ices they are rightfully entitled to recei$e without demand. (hile adopting this policy, the bank reiterates its commitments to indi$idual customers outlined in Bankers+ ,air -ractice .ode of Indian Banks+ ssociation. This document is a broad framework under which the rights of common depositors are recogni)ed. /etailed operational instructions on $arious deposit schemes and related ser$ices will be issued from time to time. Types of deposit accounts The deposit products can be categorised broadly into the following types. /efinitions of major deposits schemes are as under0 1

Term deposit means a deposit recei$ed by the Bank for a fi*ed period withdrawable only
after the e*piry of the fi*ed period and includes deposits such as Recurring',i*ed /eposits etc.

Demand deposits means a deposit recei$ed by the Bank which is withdrawable on

demand2

I. 3Sa$ings deposits4 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 period2

2 II. 3.urrent ccount4 means a form of 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 Sa$ings /eposit nor Term /eposit Key features on operation of different types of accounts & Account opening and operation of deposit accounts

The Bank before opening any deposit account will carry out due diligence as re5uired under 36now 7our .ustomer4 %67.& guidelines issued by RBI nti18oney 9aundering rules and regulations and or such other norms or procedures adopted by the Bank'as per the .ustomer cceptance -olicy of the Bank. If the decision to open an account of a prospecti$e depositor re5uires clearance at a higher le$el, reasons for any delay in opening of the account will be informed to the customer and the final decision of the Bank will be con$eyed at the earliest to the customer. The Bank is committed to pro$iding basic banking ser$ices to disad$antaged sections of the society. Banking ser$ices will be offered to them through no1frill accounts and accounts will be opened with rela*ed customer acceptance norms as per regulatory guidelines. The regulatory guidelines re5uire banks to categorise customers based on risk perception and prepare profiles of customers for the purpose of transaction monitoring. Inability or unwillingness of a prospecti$e customer to pro$ide necessary information'details could result in the bank not opening an account. Inability of an e*isting customer to furnish details re5uired by the Bank to fulfill statutory obligations could also result in closure of the account after due notice%s& is pro$ided to the customer. The account opening forms and other material would be pro$ided to the prospecti$e depositor by the Bank. The same will contain details of information to be furnished and documents to be produced for $erification and or for record, it is e*pected of the Bank official opening the account, to e*plain the procedural formalities and pro$ide necessary clarifications sought by the prospecti$e depositor when he approaches for opening a deposit account. ,or deposit products like Sa$ings Bank ccount and .urrent /eposit ccount, the Bank will normally stipulate certain minimum balances to be maintained as part of terms and conditions go$erning operation of such accounts. ,ailure to maintain minimum balance in the account will attract le$y of charges as specified by the Bank from time to time. ,or Sa$ing Bank ccount, the Bank may also place restrictions on number of transactions, cash withdrawals, etc., for gi$en period. Similarly, the Bank may specify charges for issue of che5ues books, additional statement of accounts, duplicate passbook, folio charges, etc. ll such details, regarding terms and conditions for operation of the accounts and schedule of charges for $arious ser$ices pro$ided will be communicated to the prospecti$e depositor while opening the account or from time to time as the case may be. Sa$ings Bank ccounts can be opened for eligible organi)ations'agencies %as ad$ised by RBI& from time to time&. person'persons and certain

3 .urrent ccounts can be opened by indi$iduals'partnership firms'-ri$ate and -ublic 9imited .ompanies':indu ;ndi$ided ,amily %:;,s&'Specified ssociates'Societies' Trusts etc. Term /eposits ccounts can be opened by indi$iduals'partnership firms'-ri$ate and -ublic 9imited .ompanies':;,s'Specified ssociates'Societies'Trusts etc. The due diligence process, while opening a deposit account will in$ol$e satisfying about the identity of the person, $erification of address, satisfying about his occupation and source of income. Obtaining recent photograph of the person's opening'operating the account is part of due diligence process. In addition to the due diligence re5uirements, under 67. norms the Bank is re5uired by law to obtain -ermanent ccount <umber %- <& or alternati$ely declaration in ,orm <o. => or =! as specified under the Income Ta* ct'Rules. /eposit accounts can be opened by an indi$idual in his own name %status0 known as account in single name& or by more than one indi$idual in their own names %status0 known as ?oint ccount&. Sa$ings Bank ccount can also be opened by a minor under guardianship of guardian, either natural or court appointed %Status0 known as 8inor+s ccount&. 8inor abo$e the age of @ years can be issued a debit card on specific re5uest from guardian, with a preset withdrawal limit. Operation of joint account: The ?oint ccount opened by more than one indi$idual can be operated by single indi$idual or by more than one indi$idual jointly. The mandate for operating the account can be modified with the consent of all account holders. In case of 8inorAs account, guardian can operate the account till the minor attains majority. The joint account holders can gi$e any of the following mandates for the disposal of balance in the abo$e accounts0 Bither or Sur$i$or0 If the account is held by two indi$iduals say, C B, the final balance along with interest, if applicable, will be paid to sur$i$or on death of anyone of the account holders. nyone or Sur$i$or's0 If the account is held by more than two indi$iduals say, , B and ., the final balance along with interest, if applicable, will be paid to the sur$i$or on death of any two account holders.

The abo$e mandates will be applicable to or become operational during the tenure of the term deposit and on or after the date of maturity of term deposits. This mandate can be modified by the consent of all the account holders. t the re5uest of the depositor, the Bank will register mandate'power of attorney gi$en by the customer authori)ing another person to operate the account on his behalf.

% omination facility: <omination facility is a$ailable on all deposit accounts opened by indi$iduals including joint de1 posit accounts opened with or without ABither or Sur$i$orA mandate. <omination is also a$ail1 able to a sole proprietary concern account. o <omination can be made in fa$our of one indi$idual only. o <omination so made can be cancelled or modified by the account holder's any time. o (hile creating, modifying or canceling a nomination, forms / !, / D and / E for bank deposit accounts, forms S.!, S.D and S.E for articles left in safe custody, forms S9!, S9! , S9D, S9E and S9E for safety lockers prescribed under Banking .ompanies <omination Rules, !"FG, attestation by two witnesses is re5uired only if the form car1 ries thumb impression of the account holder. ttestation by witness is not re5uired in case the form is signed by the account holder. o <omination can be made in fa$our of a minor also. Bank recommends that all depositors a$ail nomination facility. The nominee, in the e$ent of death of the depositor's, would recei$e the balance outstanding in the account as a trustee of legal heirs. The depositor will be informed of the ad$antages of the nomination facility while opening a deposit account.

!tatement of account:

statement of account will be pro$ided by the Bank to Sa$ings Bank as well as .urrent /eposit ccount :olders periodically as per terms and conditions of opening of the account. -ass book facility will also be a$ailable to the account holder on re5uest. The deposit accounts may be transferred to any other branch of the Bank at the re5uest of the depositor.

B& "inors# accounts

8inor+s Sa$ings Bank ccount can be opened and operated by guardian. One month prior to attaining majority, intimation shall be sent to the minor for submission of the fresh account opening form along with 67. documents to be kept on record and for all operational and regulatory purposes. <o o$erdraft will be granted to 8inors. .he5ue book will be issued2 howe$er che5ues can be issued only by guardian.

.& Account of illiterate$ blind person

On satisfying itself of 67. re5uirements the Bank may open deposit accounts other than .urrent ccounts of illiterate person. The account of such person may be opened pro$ided he'she calls on the Bank personally along with a witness who is known to both the depositor and the Bank. t the time of withdrawal' repayment of deposit amount and'or interest, the account holder should affi* his'her thumb impression or mark in the presence of the authori)ed officer who should $erify the identity of the person. The Bank will e*plain the need for proper care and safe keeping of the passbook etc. gi$en to the account holder. The

, Bank official shall e*plain the terms and conditions go$erning the account to the illiterate' blind person.

The Bank shall not discriminate while opening such accounts for blind and follow the guidelines of RBI from time to time

/& Addition or deletion of t&e name$s of joint account &olders

The bank may at the re5uest 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 indi$idual depositor to add the name of another person as a joint account holder.

B& 'nacti(e Accounts ccounts which are not operated for one year will be tagged as inacti$e accounts in the interest of depositor as well as the Bank. n intimation letter shall be sent to the depositor on account turning inacti$e. .ustomer can acti$ate the account by performing a financial transaction in the account.

,& Dormant accounts ccounts which are not operated for two years will be transferred to a separate dormant'inoperati$e account status in the interest of the depositor as well as the Bank. The depositor will be intimated E months in ad$ance of categorising the account as dormant. The depositor will also be informed of charges, if any, which the Bank will le$y on dormant'inoperati$e accounts. The depositor can re5uest the Bank to acti$ate the account for operating it.

H& )nclaimed Deposits$'noperati(e accounts in *an+s:

3Inoperati$e ccounts 1 sa$ings as well as current account will be treated as inoperati$e'dormant if there are no transactions in the account for o$er a period of two years. 3;nclaimed deposit accounts4 means accounts, which ha$e not been operated upon for ten years %in the case of money deposited for a fi*ed period the said term of ten years shall be reckoned from the date of the e*piry of such fi*ed period&. In an effort to play a more pro1acti$e role in finding the whereabouts of the account holders of unclaimed deposits'inoperati$e accounts, the list of such accounts which are inoperati$e for ten years or more has been displayed on our Bank+s website. ,or Indi$idual .ustomers, the list so displayed on the website contains the names of the account holder%s& and his'her address in respect of unclaimed deposits' inoperati$e accounts. ,or <on Indi$idual .ustomers, the list so displayed on the website contains the names of the Bntity and its address in respect of unclaimed deposits'inoperati$e accounts.

4 Directi(es on interest payment and term deposits a- 'nterest payments: Interest shall be paid on sa$ing account at the rate as decided by Bank within the general guidelines issued by the RBI from time to time. Term deposit interest rates are decided by the 9.O within the general guidelines issued by the RBI from time to time. The interest for sa$ings bank account shall be calculated as per method specified by RBI from time to time. ,or Interest on Term /eposits, RBI has permitted banks to formulate fi*ed deposit schemes specifically meant for senior citi)ens offering higher and fi*ed rate of interest as compared to normal deposits of any si)e. ccordingly, the Bank will pay additional interest at the rates to be decided from time to time by the 9.O. Interest on fi*ed deposit is payable at such periodicity as contracted at the time of opening an account and at specified rates from time to time within the parameters laid down by RBI'IB . The method of calculation of interest on a fi*ed deposit, both Traditional and .umulati$e /eposits is as follows0 ,or Traditional ,i*ed /eposits with 5uarterly payouts interest is calculated based on annual rates %Simple Interest&. :owe$er, in case of monthly payouts, interest is paid at a discounted rate. ,or traditional fi*ed deposits, interest is calculated on the principal amount for completed 5uarters and then for the balance period, interest is calculated for completed months and further for incomplete month on actual number of days. ,or Rein$estment /eposits'.umulati$e ,i*ed /eposits, interest is compounded 5uarterly on completion of each 5uarter. ,or the broken period beyond completed 5uarter, simple interest is calculated on the cumulated deposit amount for the actual number of days. Rein$estment /eposits are not issued for less than = months. ,or the purpose of interest calculation for actual number of days %in case interest is calculated for incomplete month&, the denominator is always taken as E=G days irrespecti$e of whether it is a leap year. Interest on o$erdue deposits will be paid at sa$ings bank rate of interest from maturity date as per RBI guideline dated ugust DD, D>>F. The rate of interest on deposits will be prominently displayed in the branch premises. .hanges, if any, with regard to the deposit schemes and other related ser$ices shall also be communicated upfront by prominently displaying it at branch premises and on the website. The Bank has statutory obligation to deduct ta* at source if the total interest paid' payable on all term deposits held by a person e*ceeds the amount specified under the Income Ta* ct. The Bank will issue a ta* deduction certificate %T/S .ertificate& for the amount of ta* deducted. The depositor, if entitled to e*emption from T/S can submit declaration in the prescribed format at the beginning of e$ery financial year. b- Premature /it&dra/al of term deposit: 0or deposits belo/ ` 12.2 million3 the Bank on re5uest from the depositor shall allow withdrawal of term deposit before completion of the period of the deposit agreed upon at the time of placing the deposit.

7 ,or deposits of ` !>.> million and abo$e, defined as bulk deposits, the Bank at its discretion, can disallow premature withdrawal of select deposits. The Bank shall, howe$er, notify such depositors of its policy of disallowing premature withdrawal in ad$ance, i.e., at the time of accepting such deposits. The Bank shall declare their penal interest rates policy for premature withdrawal of term deposit. (hile prematurely closing the e*isting deposit, interest will be paid for the period the deposit has remained with the Bank. The Bank shall make depositors aware of the applicable rate along with the deposit rate.

c- Premature rene/al of term deposit: If the depositor ha$ing an e*isting Term /eposit

applies for re1in$estment into another scheme of ,i*ed /eposit, the e*isting deposit would be closed prematurely after charging penalty as per the e*isting penalty rates. Interest will be paid for the period the deposit has remained with the bank. The interest rate pre$ailing on date of re1in$estment of term deposit will be applicable for the new term deposit.

d- 'ntimation letter before maturity date: The bank will intimate the depositor's for deposits which are due for maturity and not in auto renewal mode by sending intimation letter once before !G days of the maturity date of term deposit by post or courier at the last known address of the depositor. e- Payment of fi5ed deposits on due date: Term deposits are due for repayment on due date, as per the period mentioned at the time of acceptance of deposits. If due date falls on a holiday or a Sunday, payment is due on the ne*t working day. If fi*ed deposit receipt has been issued to the depositor, such fi*ed deposit receipt should be presented for payment duly discharged by the person%s& in whose fa$our the receipt was is1 sued. If payment is needed in cash, the discharge shall be o$er a re$enue stamp of ` ! %minim1 um& for amounts o$er ` G>>. In case of credit to depositor+s account with the Bank, the dis1 charge o$er re$enue stamp is not re5uired. The fi*ed deposit receipt itself, duly discharged, shall be treated as a debit $oucher. If a memorandum of deposit'ad$ice has been issued to the depositor, the depositor can gi$e a discharge instruction either on the memorandum of /eposit'ad$ice or fill up a separate form for withdrawal of deposit. f- 6ene/al of Term deposits: ll e*isting as well as new fi*ed deposits shall be placed under auto renewal mode, for the original period of the deposit, unless contrary instructions such as auto closure are pro$ided by the depositors anytime prior to the date of maturity and as per the mode of operation of the account. B*ceptions to the abo$e are0 <on indi$idual deposits /eposits of ` !>.> million C abo$e /eposits where ,i*ed /eposit Receipt has been issued and are jointly held Ta* Sa$er ,i*ed /eposits

Recurring /eposits

In case of auto renewal, as the case may be, interest rate pre$ailing on the date of auto renewal shall be applicable. ,or traditional fi*ed deposit, the principal deposit amount shall be renewed, while for cumulati$e fi*ed deposit the entire maturity proceeds shall be renewed. On ?une D", D>!! all e*isting domestic fi*ed deposits, against which a fi*ed deposit receipt has been issued as on that date, were con$erted to auto renewal mode. Subse5uently, new accounts will be opened as per customer instructions. g- O(erdue Term deposits: The deposits which are not renewed'discharged on or before maturity date are termed as o$er due deposits. Such o$erdue deposits will be renewed with effect from the date of maturity at interest rate applicable as on the due date, pro$ided such renewal re5uest is recei$ed within E> days from the date of maturity. ,or the renewal re5uest recei$ed after E> days from the date of maturity, no $alue dating will be permitted. Such deposits shall be renewed from the date of instruction at such terms and conditions as may be specified by bank. ,i*ed deposits which are already lying in o$erdue status ha$e been auto renewed from ,ebru1 ary !G, D>!> at the interest rate pre$ailing on that date. In case of such o$erdue deposits, sa$1 ings bank rate of interest will be payable from maturity date or ugust DD, D>>F i.e. the date of the RBI circular stipulating such payment of interest, whiche$er is later upto the date of auto re1 newal. :owe$er, fi*ed deposit for non indi$iduals, fi*ed deposit amounting to ` !>.> million C abo$e and such deposits where fi*ed deposit receipt is issued, auto renewal option shall not be e*ercised and such deposits shall be renewed as per the customer instruction at such terms and conditions as may be specified by bank. &- Ad(ances against deposits: The Bank may consider re5uest of the depositor's for loan'o$erdraft facility against term deposits duly discharged by the depositor's on e*ecution of necessary security documents. The Bank may also consider loan against deposit standing in the name of minor, howe$er, a suitable declaration stating that loan is for the benefit of the minor, is to be furnished by the depositor I applicant. <o ad$ance will be gi$en against Ta* Sa$er ,i*ed /eposits. i- Ta5 Deducted at !ource: Interest on term deposit shall be liable to ta* deducted at source as per pro$isions Income ct amended from time to time. s per pro$isions of ,inance ct D>>", w.e.f. pril >!, D>!>, $alid - < is re5uired to be submitted for all customers whose ta* needs to be deducted. In the absence of a $alid - <, ta* will be deducted at the pre$ailing rate or D>J whiche$er is higher. ,or e*emption from ta* deduction at source, .ustomers will ha$e to submit ,orm !GH': for fi*ed deposits including renewed fi*ed deposits. The benefit of ,orm !GH': shall be granted only on furnishing of $alid - <. s per the current pro$isions of Income Ta* duction at source. ct, recurring deposits are not subject to ta* de1

: Deceased account &andling a& !ettlement of dues in deceased deposit account

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. The abo$e procedure will be followed e$en in respect of a joint account where nomination is registered with the Bank. In a joint deposit account, when one of the joint account holders dies, the Bank is re5uired to make payment jointly to the legal heirs of the deceased person and the sur$i$ing depositor%s&. :owe$er, if the joint account holders had gi$en mandate for disposal of the balance in the account in the forms such as 3either or sur$i$or, former'latter or sur$i$or, anyone of sur$i$ors or sur$i$or2 etc., the payment will be made as per the mandate to a$oid delays in production of legal papers by the heirs of the deceased. In the absence of nomination and when there are no disputes among the claimants, the Bank will pay the amount outstanding in the account of deceased person against joint application and indemnity by all legal heirs or the person mandated by the legal heirs to recei$e the payment on their behalf without insisting on legal documents up to the limit appro$ed by the bank+s management. This is to ensure that the common depositors are not put to hardship on account of delays in completing legal formalities.

b& 'nterest payable on term deposit in deceased account In the e$ent of death of the depositor before the date of maturity of deposit and amount of the deposit is claimed after the date of maturity, the Bank shall pay interest at the contracted rate till the date of maturity. ,rom the date of maturity to the date of payment, the Bank shall pay simple interest at the applicable rate obtaining on the date of maturity, for the period for which the deposit remained with the Bank beyond the date of maturity2 as per the Bank+s policy in this regard. :owe$er, in the case of death of the depositor after the date of maturity of the deposit, the bank shall pay interest at sa$ings deposit rate obtaining on the date of maturity from the date of maturity till the date of payment.

0acilitation of ot&er ban+ing ser(ices a& !top payment facility: The Bank will accept stop payment instruction from the depositors in respect of che5ues issued by them. .harges, as specified, will be reco$ered. b& !afe Deposit 9oc+ers: This facility is not offered through all bank branches and where$er the facility is offered, allotment of safe deposit $ault will be subject to a$ailability and compliance with other terms and conditions attached to the ser$ice. Safe deposit lockers may be hired by an indi$idual %being not a minor& singly or jointly with another indi$idual%s&, :;,s, firms, limited companies, associates, societies, trusts etc. <omination facility is a$ailable to indi$idual%s& holding the lockers singly or jointly. In respect of lockers held in joint names, single nominees

12 can be appointed. ?oint locker holders can gi$e mandate for access to the lockers in the e$ent 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 $iew to a$oid 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. !afeguarding customer interests a& ;ustomer information: The customer information collected from the customers shall not be used for cross selling of ser$ices or products by the Bank, their subsidiaries and affiliates. If the Bank proposes to use such information, it will be strictly with the consent of the account holder, obtained at the time of account opening or subse5uently. b& !ecrecy of customer#s accounts: The bank shall not disclose details'particulars of the customer+s account to a third person or party without the e*pressed or implied consent from the customer. :owe$er, there are some e*ceptions, $i). disclosure of information under compulsion of law, where there is a duty to public to disclose and where interest of the Bank re5uires disclosure. c& 'nsurance co(er for deposits: ll bank deposits are co$ered under the insurance scheme offered by /eposit Insurance and .redit Huarantee .orporation of India %/I.H.& subject to certain limits and conditions. The details of the insurance co$er in force will be made a$ailable to the depositor. d& 6edressal of ;omplaints and <rie(ances: /epositors ha$ing any complaint'grie$ance with regard to ser$ices rendered by the bank has a right to approach authority%ies& designated by the Bank for handling customer complaint'grie$ances. The details of the internal set up for redressal of complaints'grie$ances will be displayed in the branch premises. The branch officials shall pro$ide all re5uired information regarding procedure for lodging the complaint. In case the depositor does not get response from the Bank within one month from date of complaint or he is not satisfied with the response recei$ed from the Bank, he has a right to approach Banking Ombudsman appointed by the RBI. Policy 6e(ision This policy is subject to re$ision based on the e*tant RBI guideline from time to time.