Savings Accounts Rules (Abridged)
Nomination & Survivorship Facility
Nomination facility is available for Savings Accounts and the account holders are advised to avail the nomination facility. It facilitates smooth settlement of claim by legal heirs in unforeseen circumstances. Nomination can be made in favour of 4 nominees. In case an account holder does not wish to make a nomination, the fact should be recorded on the account opening farm under his/her full signature. Joint account with survivorship benefit can be operated by the survivor, in such circumstances.
Types Of Accounts, Balance Stipulation and Service Charges
The applicants can open an account either with or without cheque book facility. The current Monthly Average Balances (MAB) prescribed for Savings Bank Accounts and the charges prescribed for non-maintenance of Monthly Average Balance (MAB), are available at the Bank's website. The information can also be obtained from Branches. There is no ceiling on maximum balance in Savings Accounts, except for Minors accounts. Minors Accounts.
Minors who can adhere to uniform signature and are not less than ten years old can open accounts in their single name and maintain therein a maximum balance of Rs. 10, 00,000/- (Rupees Ten lacs only). Minors may open joint accounts with their guardians and can maintain a maximum balance upto Rs. 20,00,000.
How to Open An Account?
In ordinary course, applicant(s) should attend the Bank personally, duly fill in and sign the prescribed application form for opening the account. Applicant(s) should submit two copies of his/her their recently taken passport size photographs. Account holder's signatures must be legible and well formed. Signatures should not be in capital or block letters. Each account will be given a distinctive account number. While dealing with the Bank, this number should be invariably quoted by the account holder(s). The account holders, in their own interest, are expected to adhere to their uniform signature as per specimen recorded with the Bank while operating the accounts and addressing any correspondence to the Bank.
Pass Book
The pass book and cheque book supplied to the account holder should be kept in a safe place. The Bank will not be responsible for any loss or incorrect payment attributable to the account holders’ neglect in this regard. For withdrawing cash by means of a withdrawal form, the pass book must be presented. Withdrawals using cheques can be effected without pass book. Deposits may be made without production of the pass book. Pass book should be got updated regularly. The pass book will be returned to the account holder immediately after completion of the transaction duly updated. In case it is not collected within a weeks' time, bank, at their discretion, may return it to the account holder by Registered A.D. post/ Courier at their cost. The account holders should carefully examine the entries in their pass books and draw the Bank's attention to errors or omissions, if any.
Duplicate in lieu of the lost or mutilated pass book may be issued on receipt of a written request from the account holder after necessary enquiries, completion of formalities and recovery of prescribed charges. The current charges prescribed for this are available at the Bank's website. This information can also be obtained from Branches.
Cheque Book
The Bank will issue the first cheque book after completion of all formalities with regard to opening of the account. Service charge will be charged to the customer's account. The current charges prescribed for this are available at the Banks website. This information can also be obtained from Branches.
The account holders must use only the cheques from the cheque books issued to them by the Bank. The Bank reserves the right to refuse payment of any cheques drawn otherwise. Ordinarily, Bank will not issue more than one cheque book at a time or before exhausting all or nearly all cheque leaves issued previously. Cheques must be written legibly. Stop payment instructions in respect of cheques issued or lost can be registered with the Bank on payment of a prescribed service charge. The current charges prescribed for this are available at the Banks website. This information can also be obtained from Branches. Cheque book request can also be sent by mail to keep a cheque book ready; cheque books will be issued against a written request duly signed by the account holder.
Operations in Savings Account
General
Savings Bank account is essentially a facility to build up savings and hence must not be used as a Current Account. Bank may close an account should it have any reason to believe that the account holder has used her/his account for a purpose for which it is not allowed.
Deposits
There is no restriction on number of deposits that can be made into the account. No deposit in cash for less than Rs 10/- will be accepted. Cheques, drafts or other instruments drawn only in favour of the account holder will be accepted for credit of the account. Third party instruments endorsed in favour of the account holder will NOT be accepted. No drawings against accepted instruments will be normally permitted until these are realized. In satisfactorily conducted accounts, immediate credit will be afforded for outstation instruments deposited up to Rs 30,000/-, which may change from time to time. The normal collection and out of pocket charges will be recovered. The current limit and charges prescribed for this are available at the Banks website. This information can also be obtained from Branches. Overdue interest will be recovered for instruments subsequently returned unpaid.
Withdrawals
The account holder can withdraw money personally from her his ordinary Savings Account by using Bank's standard withdrawal form. The pass book must accompany the withdrawal form. The withdrawal form can be used only for receiving payments by the account holder himself /herself. In Savings Accounts with cheque book facility withdrawals upto Rs 50,000/ only will be permitted using withdrawal forms. The account holder cannot withdraw an amount less than Rs. 50/-, All withdrawals must be in Rupees only, not in paise. Third party payments through withdrawal forms are not permitted. A letter of authority as per the prescribed format, along with the pass book should be sent to the Bank through an authorized representative to receive payment in case the account holder is unable to attend personally to withdraw cash from his/her account. The minimum drawing permitted per cheque form is limited to Rs. 50/-. A maximum Rs. 2, 00,000/- (Rupees Two lacs only) can be drawn through a single cheque. Information can also be obtained from Branches. Cash withdrawal can be made from the accounts of the sick, old or incapacitated account holders who are unable to attend the Bank and/or also not able to put their signature or thumb impression for withdrawing cash by completing the laid down formalities.
Overdrafts
Overdrafts in Savings Bank accounts will not be permitted. Cheques drawn in excess of the balance in the account will be returned unpaid. Service charge will be recovered each time a cheque is returned unpaid for want of sufficient funds. Charges prescribed for this are available at the Banks website. This information can also be obtained from Branches.
Inoperative Accounts
Account holders are advised to operate their accounts regularly. Accounts not operated are classified as Inoperative after the stipulated time period of 24 months since last operation. No charges will be recovered for activation of Inoperative accounts.
Standing Instructions
The account holder can request the Bank for effecting periodical payment of insurance premium; membership fees etc. by debit to her his account on payment of service charges. Charges for Standing Instruction are available at the Banks website. This information can also be obtained from Branches. The current prescribed from Branches.
Payment of Interest
Interest on Savings Accounts Balances will be paid quarterly @ ____ pa. and it is subject to the RBI Directions applicable from time to time.
Interest will be calculated on a daily product basis. Interest will be paid only if it works out to Rs. 1/- or more. Thereafter, fifty paise and more will be rounded off to the next higher rupee and anything less than fifty paise will be ignored. In case of accounts frozen by the enforcement authorities, Bank will continue to credit the interest to the account on a regular basis.
Transfer & Closure Of Account
Accounts which are fully KYC compliant may be transferred between branches of the Bank at the request of the account holder(s). Request for closure of account should state the reason for closure. Joint accounts can be closed only at the request of all such joint signatories. Service charge at prescribed rate will be recovered if an account is closed before 14 days of its opening. The current charges prescribed for this are available at the Banks website. This information can also be obtained from Branches.
Change in Rules
The Bank reserves the right to alter, delete or add to any of these Rules and service charges for which the customer will be duly notified through Bank's website and/or branch notice board.
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