This scheme is suitable to those who are having regular monthly income. Under this scheme the account holder have to regularly deposit fixed sum of money by way of monthly installments over a period of stipulated period.
- Minimum Rs.50 per month or in multiples thereafter.
- Minimum - 6 months and in multiples of 3 months.
- Maximum - 120 months.
- Recurring Deposit passbook will be issued to the depositor.
- Available as per the prescribed rules of the Bank.
- Available as per the prescribed rules of the Bank. (Refer other terms &conditions)
Payment of Monthly installments:
- Monthly installment may be remitted by the depositor by cash or through cheques.
- The depositor may alternatively be advised to give standing instructions to debit his operative accounts for adjusting monthly installments.
- Recurring Deposit Installments may be remitted through intersol transaction free of charge.
- The date of maturity falls on the date of opening of the account after the completion of the contracted period.
- A Recurring Deposit shall mature for payment 30 days/one month after the last installment is paid or on the expiry of the period for which the deposit is accepted whichever is later, irrespective of whether the last installment is paid with or without penalty in subsequent month(s).
Due date of the installment:
- The account can be opened on any working day in a calendar month.
- Every subsequent installment falls due for payment during the succeeding month on the date on which the account was opened.
- In case of delay in payment, it will attract penal charges.
Calculation of interest on Irregular/Discontinued deposits paid before, on or after maturity:
- An account where stipulated installment are not paid but has completed the agreed period should be treated as discontinued account.
- If paid on or after due date interest shall be applied at the rate of interest applicable as on the date of opening of account to the period, based on monthly products reckoned on minimum balance lying in the account without compounding the interest quarterly.
- In case of delay in payment of any installment by the depositor, a penalty shall be charged which is at present Rs.1.50/- per month for every Rs.100/- for deposits of 5 years and less and Rs.2/- for every Rs.100 per month for deposits of over five years. Fraction of a month, being treated as a full month for the purpose of calculating of such penalty.
- This penalty leviable on delayed installments may be set off against payment of equal number of advance installments.