Opening of Accounts

Term Deposits would be opened for approved persons/firms such as
a) Individual - Single Accounts.
b) Two or more individuals - Joint accounts
c) Sole proprietary concerns.
d) Partnership Firms.
e) Joint Hindu Families or Firms.
f) Limited Companies.
g) Associations, Clubs, Societies, etc.
h) Trusts.
i) Municipalities/Govt. & Semi-govt bodies/Panchayats/Religious institutions/Educational institutions, charitable institutions etc.

Account Opening Form

Common Account Opening Form should be completed in all respects and signed by all the account holders irrespective of the mode of operations on the account.

Need to open Current/SB
Account.

It is desirable that the Term Deposit account holders also maintain Savings/Current account with the Bank, so as to avoid delay in disbursement of interest on term deposits or payment of proceeds of term deposits and to avoid inconvenience to the customer having to call on the Branch to collect the interest/proceeds.

Opening of Accounts/
Identification of the Customer (Individuals)

The account shall be opened on the basis of information in the account opening form, supported by address proof, identity and a recent photograph. For address proof and identity proof Passport/PAN Card/Voter’s Identity Card/Driving License/Employer’s ID Card (or satisfactory confirmation/letter from Employer)/Letter from a recognized public authority or public servant verifying the identity and residence of the customer to the satisfaction of the Bank/Photo Credit Card are required. The Bank is required to obtain Permanent Account Number (PAN) or alternatively obtain declaration in Form No. 60 or 61 as per the Income Tax Act from the person/s opening the account. The customer has to comply with stipulated KYC norms.

Joint Accounts of Individuals

Can be opened with operational instructions “Either or Survivor” or Former or Survivor” or “Any One/All of the Joint Account Holders”.

Operational instructions

While the operational instructions can be in any manner (say either or survivor or former or survivor or any one Partner/Director/Trustee etc,), the same would be jointly authenticated in the account opening form in case of Partnership Firms and in case of Limited Companies or Trusts or Societies etc would be in accordance with the Board Resolution or the Trust Deed or the Bye Laws as the case may be.

Change in Operational Instructions

Are possible with the consent of ALL the joint account holders. Bank will not be bound to act on the instructions of one or some only of the joint account holders regarding such alteration.

Death of depositor(s)

On death of a depositor, the proceeds of the term deposit shall be paidto the surviving or the last surviving depositor, as the case may be, as per operational instructions or to the nominee(s) / legal heirs as per rules of the Bank.

Nomination Facility

The nomination may be made in the account opening form itself in all personal accounts/sole proprietary accounts wherever such nomination is desired by the account holder(s).

Minimum Deposit For Opening the Account

Minimum amount of TDR have been stipulated by the Bank for various types of term deposits and for various types of branches. The accounts-holders to observe the same, as applicable from time to time.

Period of deposit

The maturity period of deposits can be from 7 days to ten years.

Interest on Term
Deposits

Interest on term deposits shall be as applicable on the date of issue of fixed deposit receipt. Interest would be calculated at quarter or larger intervals (and not monthly). In case Monthly Interest Certificate (MIC) Scheme, the interest is paid monthly, at discounted value of the interest for one month, provided however that the amount of interest paid every month is not more than the discounted value of interest for one month, so that even if interest is allowed on the interest so paid, the aggregate amount (i.e. the amount of interest paid monthly together with the interest that may accrue on the amount so paid in one month) would not exceed one month’s interest on the deposit calculated on a quarterly basis.

Renewal/withdrawal
of term deposits
receipts from other
than parent CBS/
MBB branch

Depositors can not get their Term Deposit Receipts renewed/paid from any other branch, other than the Branch from where it was issued. The Depositors also cannot get the TDS Certificate, Interest certificate, print-out or any other information from any branch, other than the parent branch.

Recurring Deposits

Recurring Deposits accounts can be opened where the deposits will be in equal monthly installments. Minimum monthly installment is Rs.500/- in respect of Metro and Urban branches and Rs.100/- in case of Semi Urban and Rural branches. Penalty will be charged on the installments in arrears, on the rates applicable from time to time. Standing instructions of the depositors to transfer the amount of monthly installments from their current/savings account to their Recurring Deposit account may be accepted free of charge. When all the installments stipulated by the depositor are paid, the accumulated amount will be repayable together with accrued interest 30 day after the last installment has become payable and has been paid, or the date of maturity whichever date may have fallen later.

Automatic Renewal

The customers should give their renewal instructions atleast two days before maturity date, otherwise the receipts gets automatically rolled for a similar period at rates prevalent on the date of such auto renewal. The Bank shall not send any intimation about the impending maturity of the term deposit.

Tax deduction

Income Tax, as per prevalent rates and rules shall be deducted at the time of every application of interest and shall be deducted from the SB/CD account or from the proceeds of the Term deposit. Interest Certificate/TDS certificate shall be issued at the end of the year. The customers may submit form 15G/H, immediately on issue of the fixed deposit receipt as well at the beginning of the each new financial year, if they desire that the TDS should not be deducted by the Bank.

Payment of term
Deposits

Payment of the term deposits shall be made to depositor only by means of an account payee cheque/DD or way of credit to his account in case the amount of all the deposits (at the branch) together with interest, held by a person in his own name or jointly with any other person is Rs.20,000/- or more on the date of payment of any or more of the deposits. The same rule is applicable where the repayment of interest alone is Rs.20,000/- or more.

Payment before
maturity/
Restrictions

The Bank, on request from the depositor, may allow withdrawal of a term deposit before completion of the period of the deposit agreed upon at the time of making the deposit. While prematurely closing a deposit, interest on the deposit for the period that it has remained with the Bank will be paid at the rate applicable to the period for which the deposit remained with the Bank and not at the contracted rate. In addition the Bank can levy penalty, as applicable from time to time. Further, the Bank may disallow premature withdrawal of large deposits held by entities other than individuals and HUFs. For payment before maturity , all the joint account holders have to sign.

Advance against
Term deposits

The depositors may seek advance against term deposits. The rate of interest on the advance and the margin shall be at the discretion of the Bank. In such cases, all the joint holders have to sign the relevant documents and discharge the term deposits.

The Bank reserves to itself the right to delete, add to or alter these Rules at any time without giving a separate Notice to every account-holder. An announcement of any change in the rules put up on the Bank’s Notice Board or published in the press or put on Bank’s website shall be deemed to be sufficient Notice to all account-holders.