Fixed Deposit (Fixed/Dual) Terms and Conditions

Fixed deposits can be opened by any individual or group recognized by the bank, under the following conditions and in accordance with the directives of the Reserve Bank of India (RBI) and the decisions of the Board of Directors:

Eligibility to Open Fixed Deposit Accounts:

    • The account can be opened in the name of an individual (man or woman).
    • A guardian may open a fixed deposit account on behalf of a minor by submitting the minor’s certified birth certificate.
    • A fixed deposit may be opened jointly by two or more individuals, with payment terms specified for the account holders or their nominees.
    • An illiterate person can open a fixed deposit account, but they must present a recognized individual to verify their thumbprint at the time of account opening.
    • Authorized officers of registered companies, corporations, trusts, associations, etc., may open fixed deposit accounts as per the institution’s regulations and applicable laws, which must be submitted to the bank upon account opening.

Payment Terms:

    • For fixed deposits of Rs. 20,000 or more, payments will not be made in cash. The amount will be transferred through an account payee cheques, account payee bank draft, or credited to the designated bank account.

Dual Deposit Account Terms:

    • For dual deposit accounts, where the interest amount exceeds Rs. 20,000, payment will be made only through account payee cheques, account payee bank drafts, or transferred to the designated bank account, in line with the same payment terms.

Loans Against Fixed or Dual Fixed Deposits:

  • Fixed deposit certificates may be submitted as collateral to secure a loan, with the following conditions:
  1. A loan of up to 90% of the deposited amount can be availed.
  2. The interest rate on the loan will be 1% higher than the interest rate on the fixed deposit.
  3. The loan may be repaid either as a lump sum or in installments.

Overdraft Facility Against Fixed Deposit:

    • An overdraft facility may be availed by mortgaging the fixed deposit receipt, with the maximum overdraft limit set at 90% of the deposited amount.

These terms are subject to the regulations set forth by the RBI and the bank’s policies.