Savings Bank Account
Savings Bank Account
1.Opening of Account
An application to open an account should be made in the prescribed form supplied by the Bank and the account shall be opened subject to ‘policy on bank deposits’ as notified in the bank’s web-site. The account to be opened should be properly introduced. S.B Accounts can be opened by:
a)a person on his/her behalf;
b)two persons or more to be operated by or payable to any one or more of them or survivor/survivors;
c)a minor, represented by a guardian, by declaring the date of birth of the minor;
d)a minor, on his own behalf, if he is literate and above 14 years, for reasonable amounts but without cheque book facility on production of satisfactory proof of date of birth;
e)Registered Clubs, Associations, Charitable and Religious Institutions – rules, bye-laws and all necessary information regarding such organisations should invariably accompany the account opening forms. But interest eligibility to such accounts is subject to Reserve Bank of India directives;
f)Savings Bank Accounts in the name of the following agencies may be allowed to be opened to earn interest thereon.
i.Primary Co-operative Credit Societies financed by the Bank
ii.Agricultural Produce Marketing Committee (APMC)
iii.Govt. Department/ Bodies/ Agencies in respect of grants/ subsidies released for implementation for various programmes/Schemes sponsored by central Govt./State Govt. subject to production of authorization from respective central or State Govt. Departments to open Saving Banks Accounts.
iv.Development of Women & Children in rural areas (DWCRA)
v.Self Help Groups (SHGs) registered or un registered which are engaged in promoting Saving habits among their members.
vi.Formers clubs-Vikas volunteer vahini-VVV.
vii.Khadi and Village Industries Boards (KVIB)
viii.Societies registered under Societies Registration Act 1860 or any other corresponding law in force in a state or union territory.
ix. Nagara Panchayats, Nagara Palikes or Municipal bodies who have been given subsidy under Nehru Rojgar Yojana to various Schemes of Urban Micro – Entrepreneurs (SUME)
x.Other institutions not listed above but where entire income is exempt from payment of income tax under IT Act, 1961.
The following institutions are ‘EXCLUDED’ from opening Savings Bank accounts and earn interest thereon.
1)Government Departments/Bodies depending on Budgetary allocations for performance of their functions.
2)Municipal corporations or Committees.
3)Panchayat Samithies
4)Industrial Development Authorities
5)State Housing Boards
6)Water/Sewerage/Drainage Boards
7)State Textbook Publishing Corporations/Societies
8)Metropolitan Development Authorities
9)State or District Level Housing Co-operative Societies
10)Trading or Business firms.
2.Initial Deposit - Minimum Balance
An initial minimum deposit of Rs.250.00 is to be paid to open the account and the depositor should always maintain a minimum balance of Rs.250/- to keep the account running if cheque book facility is not availed . If cheque book facility is availed, a minimum balance of Rs. 500/- is to be always maintained to keep the account running.
3.Pass-Book/Pass-Sheet/Cheque Book
a.The facility of cheque-book will be provided to the account holder who maintains a minimum balance of Rs.500/-. But this facility will be withdrawn if the balance falls below Rs.500/-.
b.Separate printed forms called ‘withdrawal forms’ shall be given only to the account holder for with-drawals from the account provided this is accompanied by the Pass-book.
c.The bank reserves to itself the right to refuse payment of cheques not drawn on printed form supplied by the Bank.
d.No charge for issuance of the first Pass-book or the subsequent Pass-books in continuation of the earlier pass-book.
e.If the original pass-Book is lost, a duplicate will be issued on a written request by the account holders and on payment of service charge as prescribed by the bank.
f.On a written request, on the printed requisition form inserted in the cheque book, fresh cheque book will be issued. The depositor should examine that all the serially numbered cheque leaves are intact along with another requisition form in the new cheque book. If any cheque leaf is missing, the bank must be informed immediately before the account holder leaves the bank counter.
g.Cheque-books will not be given to third parties without properly filling the requisition forms and duly authorising and attesting the signature of the messenger/representative of the account holder.
h.Cheques and cheque –book requisition form sent through post shall always be despatched by Registered Post at the cost of the account holder.
i.Depositors shall always keep their Pass-book and cheque-book in safe place. The Bank will not be held responsible for any loss or wrongful payment on account of non-compliance of this rule by the depositor.
j.The Pass-book should be got up-dated at regular intervals .
k.On receipt of a Pass-book, all entries in the Pass-book should be carefully examined and discrepancies, if any, such as errors/omissions/unauthorised debits and credits should be brought to the notice of the Bank, failing which the entries made in the Pass-book will be deemed to be correct and shall be binding on the depositor for all intents and purposes.
l.The account holder should not on their own make any entries in the Pass-book.
m.The Bank reserves to itself the right to correct the entries wrongly made or found to be fictitious.
n.Withdrawal forms/cheques should be signed by the Drawer in conformity with his specimen signature lodged with the Bank and in accordance with the instructions regarding the mode of operations. The bank will be free to refuse payment against withdrawal forms or cheques on which the drawer’s signature does not exactly correspond with the specimen signature on Bank’s record.
o.Drawer’s signature on cheques/withdrawals forms in any language or script other than Kannada, Hindi or English should be made in the presence of an authorized official or the Bank.
p.The depositor unable to write shall call on the Bank and affix his thumb impression on the cheque/withdrawal form in the presence of a witness who knows the depositor and is also known to the Bank.
q.If the cheque or cheque-book requisition form is lost or stolen while in possession of the account holder or in postal transit, The Bank does not assume responsibility and shall absolve itself from all liabilities for any loss whatsoever that may arise on account of negligence on the part of the account holder in not observing the necessary precautions.
r.Cheque should be Drawn (preferably in indelible ink) in such a way as to prevent unauthorized operations or alterations after issue. The amounts should be stated both in words and figures. Writings should be legible and distinct. The amount of the cheque expressed must commence immediately after the printed words ‘Rupees/Rs.’ and the amount so expressed in words must end with the word ‘only’ or with “/=” in figures respectively.
4.Rate of Interest
The interest at the rate prescribed by the bank shall be paid on the daily minimum closing balance in the account. No interest will be allowed unless the account earns a minimum interest of Rs.10.00 per half year. Interest earned would be rounded off to the nearest rupee. Such interest will be calculated and credited to the account on quarterly basis.
5.Withdrawals
a.Withdrawals are permitted only by a cheque or withdrawal form provided by the Bank. Withdrawal form is issued to the account holder only when he appears in person at the Bank and on production of the Pass-book.
b.Cheques should be signed by the drawer in conformity with the style of operation of the account and the specimen signature lodged with the Bank. The Bank will be at liberty to refuse payment of such cheques which do not conform to this rule.
c.Total number of withdrawals should not exceed 60 every half year. This includes withdrawal by cheque, withdrawal forms, transfer of funds from one account to another, letter to transfer funds, standing instructions etc. For accounts opened in the middle of the half year permissible withdrawals will be calculated prorata. If the number of withdrawals exceed the permitted limit, a service charge of Re.1.00 per withdrawal in excess of the permitted withdrawal shall be levied.
d.Cheques, Dividend Warrants, Pay orders, pension bills etc., drawn in favour of the account holder only will be collected through this account against payment of collection charges. Only on realisation of these instruments, the proceeds will be credited to the account. The Bank will not be responsible for any loss that may occur on account of delay or otherwise in transmission or collection.
e.Writing on the cheques should be legible and distinct to avoid ambiguity especially name of the payee, date of the cheque and the amount of the cheque expressed in words and figures. If the amount stated in words and figures differs, such instrument shall not be paid.
f.Altered/mutilated/soiled cheques shall not be honoured.
g.The depositor shall inform the Bank immediately in the event of loss of any cheque-book/leaves or Pass-book.
6.Dishonour
a.The following types of cheques/withdrawal forms will not be honoured:
i.Cheque drawn against unrealised credits.
ii.Post dated / stale cheques;
iii.Cheques presented after three months from the date of cheque;
iv.Cheques drawn for amounts in excess of balance at credit in the account;
v.Cheques drawn on forms other than those supplied by the Bank;
vi.Cheques containing extraneous matters;
vii.Signature of the account holder not as per the specimen signature lodged with the Bank;
viii.Cheques not properly drawn in any other manner;
ix.Cheques countermanded by a competent authority.
b. Every dishonour of cheque for insufficiency of funds attract charges at the rate prescribed by the bank.
7.Loss of Token
Charges as prescribed by the bank will be levied for every token that is lost by the customer.
8.Lien
The Bank has a paramount lien/right of set-off on the deposit account and it reserves to itself its right to appropriate the deposit amount towards any financial obligation of the depositor, in any capacity to the Bank.
9.Inoperative Accounts
Accounts in which there are no operations for a period of two years and above from the date of last operation will be treated as inoperative accounts. Service charge as prescribed by the bank will be levied on such accounts. Accounts with balance of less than Rs.20/- will be closed and balance will be transferred to Head Office, if no operations are there for ten years and more.
The Bank reserves to itself the right to alter/add/delete the rules at any time. For this purpose, the Bank shall not require to give a separate notice to each account holder. All announcements of any change in the rules, displayed on the Bank’s Notice Board or published in the press/ Bank’s web site shall be deemed to be sufficient notice to all account holders.
10. Closure of Account
Request for closure of account shall be in writing. The account holder shall return all unused cheque-leaves and Pass-book. He shall declare that all cheques issued by him on the account have been duly accounted for in the account before closure. In case of joint accounts, for closing the accounts, all the depositors should act in accordance with the instructions given at time of opening the account.
The bank reserves to itself the right to close any account, which in its opinion is not properly conducted or is otherwise undesirable for any reason.
If the account is closed within one year from the date of opening, incidental charges as prescribed by the bank will be levied and deducted from the balance before it is paid.