Discharge of deposit receipt
| Scenario |
Anyone or Survivor A or S |
Number One or Survivor N or S |
| Premature payment |
All depositors have to sign |
First depositor alone can sign |
Premature Payments (PMP) Withdrawal
The company reserves the right to allow, at its absolute discretion, withdrawal of deposits before maturity. Where a deposit is so allowed to be prematurely withdrawn the relative deposit receipt must be discharged by all the depositors in case of A or S/s deposit and by the first named depositor in case of N or S/s deposit.
As per the Directions of RBI currently in force rates provided below shall apply.
| Up to 3 months from the date of deposit/renewal (Lock-in-period) |
No repayment. (Allowed in the event of death of the Depositor**) |
However in order to meet certain expenses of emergent nature, subject to satisfaction of the company
Tiny Deposits: (Aggregate amount up to ₹ 10,000/- for a Depositor) may prematurely be paid fully, without interest. to individual Depositor.
Other Deposits: Upto 50% of the Principal Amount or ₹ 5Lakhs, whichever is lower, may be prematurely paid to Individual Depositors, without interest. Remaining amount will continue as per the terms of the Contract.
In case of Critical illness**: 100% of the Principal Amount to be paid prematurely without interest.Expense of an emergent nature includes medical emergency or expenses due to natural calamities/disaster as notified by the concerned Government/Authority.
Critical illness shall be guided by IRDAI(Health Insurance) Regulations,2016 and the guidelines issued thereunder, as amended from time to time.
| After 3 months but before 6 months |
No Interest* |
| After 6 months but before the date of maturity |
The interest payable shall be 2% lower than the interest rate applicable to a deposit for the period for which the deposit has run or if no rate has been specified for the period, then 3 % lower than the minimum rate at which deposits are accepted by the Company* |
* The above Rates are also applicable for PMP in case of the death of a Depositor.
**Premature payment can be made without interest in the case of death of a Depositor.
Loan on Deposits
The Company may grant, at its sole discretion, Loan against Deposit up to 75%of the deposit amount, provided the deposit had run for a minimum period of 3 months. The loan amount shall carry interest @2% above the contracted rates. The relative term deposit receipt and loan documents have to be signed by all the depositors in case of A or S/s accounts and by the first depositor in case of N or S/s accounts. Renewal with loan is not possible .If renewal instructions for the balance amount (subject to a minimum of ₹10,000) are not received within one week in advance of the maturity, payment after adjustment of loan principal and interest will be made. Loan facility not available for NRI and Company Deposits.
The company may grant, at its sole discretion, loan against a deposit, provided the deposit has run for a minimum period of 3 months up to 75% of the deposit amount, carrying interest @2% above the contracted rate (compounded at the same rate as of the TDR) payable on such deposits. The relative term deposit receipt and loan documents have to be signed by both/all the depositors in case of A or S/s accounts and by the first depositor in case of N or S/s accounts. Loan payment shall be credited to first Depositor’s bank account through electronic mode.
