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Prematurity Payment & Loans
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 Withdrawal

The company reserves the right to allow, at its absolute discretion, withdrawal of deposit 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 Where a deposit is so allowed to be prematurely withdrawn the relative deposit receipt must be discharged by all the depositors in case of A or S/s deposit and by the first named depositor in case of N or S/s deposit.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:

Before 3 months from the date of deposit/renewal(Lock-in-period) No repayment (Not applicable in case of premature repayment in the event of death of the depositor**)
After 3 months but before 6 months No Interest*
After 6 months but before the date of maturity The interest payable shall be 2 percent lower than the interest rate applicable to a depositor for the period for which the deposit has run or if no rate has been specified for that period, then 3 percent lower than the minimum rate at which deposits are accepted by the company*

** Premature payment can be made without interest in the case of death of a depositor.

* The above Rates are also applicable for Prematurity payment(PMP) in the case of a death of depositor.

Loan on Deposits

The company may grant, at its sole discretion, loan against deposit, provided the deposit had run for a minimum period of 3 months upto 75% of the deposit amount, carrying interest @2% above the contracted rate (compounded at the same rest 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. Cheque/DD for loans will be drawn only in favour of the first depositor.

Maturity payment after adjustment of loan principal and loan interest will be made on maturity, if renewal instructions for the balance amount (subject to a minimum of Rs.10,000) are not received within one week in advance of the maturity.