One of the important functions of the Bank is to accept deposits from the public for the purpose of lending. In fact, depositors are the major stakeholders of the Banking System. The depositors and their interests form the key area of the regulatory framework for Banking in India, and this has been enshrined in the Banking Regulation Act, 1949. The Reserve Bank of India is empowered to issue directives / advices on interest rates on deposits and other aspects regarding conduct of deposit accounts from time to time. With liberalization in the financial system and deregulation of interest rates, banks are now free to formulate deposit products within the broad guidelines issued by RBI.
This policy document on deposits outlines the guiding principles in respect of formulation of various deposit products offered by the Bank and terms and conditions governing the conduct of the account. The document recognizes the rights of depositors and aims at dissemination of information with regard to various aspects of acceptance of deposits from the members of the public, conduct and operations of various deposit accounts, payment of interest on various deposit accounts, closure of deposit accounts, method of disposal of deposit of deceased depositors, etc., for the benefit of the customers. It is expected that this document will impart greater transparency in dealing with the individual customers and create awareness among customers of their rights. The ultimate objective is that the customer will get services they are rightfully entitled to receive without demand.
While adopting this policy, the Bank reiterates its commitments to individual customers outlined in Bankers' Fair Practice Code of Indian Banks' Association. This document is a broad framework under which the rights of common depositors are recognized. Detailed operational instructions on various deposit schemes and related services shall be issued from time to time.
The objective of the policy is to provide guidance around following aspects:
Type of Deposit Accounts
While various deposit products offered by the Bank are assigned different names. The deposit products can be categorized broadly into the following types: -
Account Opening and Operation of Deposit Accounts
The Bank before opening any deposit account will carry out Due diligence as required under "Know Your Customer"(KYC) guidelines issued by RBI and or such other norms or procedures adopted by the Bank. If the decision to open an account of a prospective depositor requires clearance at a higher level, reasons for any delay in opening of the account will be informed to the customer and the final decision of the Bank will be conveyed to the customer at the earliest.
Premature Withdrawal of Term Deposit
Intimation Before Maturity Date
The Bank will intimate depositors of term deposits that do not have any disposal instruction at maturity, by email or SMS at the registered contact details of the depositor, 7 days prior to the date of maturity of the deposit.
Renewal of Overdue Term Deposit Accounts
If a Term Deposit matures and the proceeds are unpaid, the amount left unclaimed would attract Savings Bank Rate of Interest.
Basic Savings Bank Deposit Account (BSBDA)
Operation of Joint Account
Statement of Account
Account of Illiterate/Blind Person
Addition or Deletion of The Name/s of Joint Account Holder/s
The Bank may at the request of all the joint account holders allow addition or deletion of name/s of joint account holder/s if the circumstances so warrant or allow an individual depositor to add the name of another person as a joint account holder.
The customer information collected from the customers shall not be used for cross selling of services or products by the Bank, their subsidiaries, and affiliates. If the Bank proposes to use such information, it should be strictly with the consent of the account holder and to be taken separately.
Secrecy of Customer’s Account
The Bank shall not disclose details / particulars of the customer's account to a third person or party without the expressed or implied consent from the customer. However, there are some exceptions, viz. disclosure of information under compulsion of law, where there is a duty to public to disclose and where interest of the Bank requires disclosure.
Advance Against Deposits
The Bank may consider request of the depositor(s) for loan/overdraft facility against term deposits as per the credit policy of the Bank.
Settlement of Dues in Deceased Depositor’s Account
Interest Payable on Term Deposit in Deceased Depositor’s Account
Insurance Cover for Deposits
Stop Payment Facility
The Bank will accept stop payment instruction from the depositors in respect of cheques issued by them. Charges, as specified, will be recovered.
The Depositor Education and Awareness Fund Scheme, 2014 (DEAF)
RBI has established The Depositor Education and Awareness Fund (the Fund). Under the provisions of Fund, the amount to the credit of any account with the Bank which has not been operated upon for a period of ten years or any deposit or any amount remaining unclaimed for more than ten years shall be credited to the Fund, within a period of three months from the expiry of the said period often years. The Fund shall be utilized for promotion of depositors “interest and for such other purposes which may be necessary for the promotion of depositors” interests as specified by RBI from time to time. The depositor would, however, be entitled to claim from the Bank his/her deposit or any other unclaimed amount or operate his/her account after the expiry of ten years, even after such amount has been transferred to the Fund. The Bank would be liable to pay the amount to the depositor/claimant and claim refund of such amount from the Fund.
Safe Deposit Lockers
Redressal of Complaints and Grievances
With the objective of redressing customer grievances, the Bank has formulated a comprehensive Grievance Redressal Policy which is hosted on the Bank’s website for viewing.
Review of the Policy
This policy would be reviewed once a year or if there is a change required, whichever is earlier and would be placed by the Board for their approval.
The information in this policy is strictly confidential to the company and should not be disclosed to any other person. It may not be reproduced in whole, or in part, nor may any of the information contained therein be disclosed without the prior consent of the Compliance Department.
Any form of reproduction, dissemination, copying, disclosure, modifications, distribution and or publication of this material is strictly prohibited.
Copyright © 2023 Shivalik Small Finance Bank. All Rights Reserved. Site updated on 08/12/23 .
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