Important Banking Information
- DICGC Insurance cover is available for deposit amount upto Rs. 1.00 lakh (including interest) in the Bank.
- TDS :
TDS is applicable for interest income over and above Rs. 10000.00 in a particular financial year. 10% tax will be deducted from the interest amount as and when it is applicable.
- Nomination : Nomination facility is also available with the Bank. The Bank normally insists that the person opening a deposit account make a nomination. Nomination facility is also available with respect to Articles in Safe Custody and Safe Deposit Lockers.
- Various facilities of interest payment are available with the Bank :
1. Direct transfer of interest to accounts maintained with any Branch of the Bank.
2. Payment of interest through Pay order / RTGS / NEFT to another Bank.
3. As a matter of customer service we are starting ECS facility for our customers for direct credit of interest to their respective Banks.
- Mode of payment of Term Deposit of Rs. 20000.00 and above.
As per rules of Income Tax, the limit of repaying any term deposit together with interest, if any, payable thereon in cash is restricted to Rs. 20000.00 only. For deciding the mode of repayment of any deposit(s), the aggregate amount of deposits held by a person with the branch of a Bank (and not the Bank as a whole) is to be reckoned.
Payment of interest on deposits could be effected in cash periodically, but if on the maturity of the deposits, aggregate amount of the principle together with interest due thereon is Rs. 20000.00 or more, then the payment should be made by account payee cheque or account payee Bank draft or by crediting the amount to the account of the depositor.
- Renewal of Deposit :
1. Rate of Interest to be applied for the lapsed period above 14 days from the date of maturity will be 4% p.a.
2. The grace period for renewal of deposits with retrospective is limited to 14 days.
- With respect of a term deposit maturing for payment on a Sunday or a holiday or a non business working day, the bank shall pay interest till the next working day at the original contract rate.