Term Depopsits

Chapter - 3
Term Deposits
CONTENTS
S.No Subject Page No.
Part – A: FIXED DEPOSITS
1 Introductory 7
2 Who can make fixed deposits 7
3 Know Your Customer (KYC) 8
4 Amount of Deposits 8
5 Duration for the deposit 8
6 Forms required for opening of an account 8
7 Permanent Account Number (PAN) or Form 60 or 61 and Tax 10
Deduction Account Number (TAN)
8 Terms and Conditions of the Deposit Scheme 11
9 Customer Acceptance Policy (CAP) 11
10 Customer Identification Procedure (CIP) 11
11 Verification of the Forms 11
12 Risk Categorization 13
13 Customer Due Diligence (CDD) 13
14 Permission to open the Account 14
15 Voucher for accepting Deposit Amount 14
16 Acceptance of Cash for the Deposit Account 14
17 Opening of the Deposit Account – through a Cash Transaction 15
18 Opening of the Deposit Account – through a Transfer 16
Transaction
19 Opening of Multiple Deposit Accounts with a Single Cheque 19
20 Printing/Preparing and delivery of the Deposit Receipt 20
21 Interest Payment Frequency 21
22 Calculation and Posting of half-yearly interest – Procedure 21
23 Payment of Half Yearly Interest 24
24 Payment of Quarterly interest 24
25 Payment of monthly interest 24
26 Interest Payment 25
27 RBI/IBA Guidelines on calculation of interest 25
28 Standing instructions 25
29 General Aspects 26
30 Closure of Deposits 27
31 Automatic Renewal 30
Part – B: CALL DEPOSITS
1 Introductory 31
2 Interest 31
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Part – C: KALPATARUVU DEPOSITS
1 Introductory 33
2 Who can make Kalpataruvu Deposits 33
3 Duration of the deposit 34
4 Amount of Deposit 34
5 Forms required for opening of the account 34
7 Interest calculation 35
Part – D: CASH CERTIFICATES
1 Introductory 36
2 Who can make a deposit under the scheme 36
4 Amount of deposit 37
5 Forms required for opening of the account 37
6 General aspects 37
7 Interest 38
Part – E: BHAGYALAKSHMI DEPOSIT SCHEME
1 Introductory 39
2 Who can open the account 39
3 Identification of the applicants 39
5 Duration of deposit and frequency of credits to the account 39
6 Rate of interest 40
7 Opening of Accounts 40
8 Pass Books 40
9 Identity Card for the Agent for Collection of Deposits 41
10 Bhagyalakshmi Deposit Cards 41
11 Verification of Deposit Cards 43
12 Accounting Procedure 43
13 Calculation and posting of Half Yearly interest 44
14 Closure of Accounts 45
15 Deposit Loans 45
16 Discharge and Payments 45
17 Converting the Balance in BLD account into Fixed or 45
Reinvestment Deposit
18 Cancellation of Deposits before Due Date 46
19 Balancing 46
20 Transfer of Accounts 46
21 Commission to the collection Agent 46
22 Balance confirmations 47
23 Precautions 48
24 Terms and conditions for appointment of collection Agents 50
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Annexure
I Agent’s Agreement 52
II Letter of guarantee 55
Part – F: RECURRING DEPOSITS
1 Introductory 57
3 Identification of the applicants and authorised signatories 57
6 Application and other Forms 58
7 Voucher for accepting Deposit Amount 58
8 Acceptance of Cash for the Deposit Account 59
9 Opening of the Deposit Account – through a Cash Transaction 60
10 Opening of the Deposit Account – through a Transfer 61
Transaction
11 Recurring Deposit Pass Books 64
12 Due Date of Instalment 64
13 Due Date of the Deposit 64
14 Maturity Value 65
15 Monthly Instalments 65
16 Instalment payment through cash transaction 65
17 Instalment payment through Transfer transaction 65
18 RD Instalment Receipt Entry Option 66
19 Standing Instructions 67
20 Penalty for delayed payment of instalments 67
21 Advance Payment of Instalments 67
22 Application of Interest on RD Accounts 68
23 Due date intimation 69
24 Closure of RD Accounts 69
25 Discontinued Recurring Deposit 73
26 Returning of the Pass Book 74
27 Overdue Deposits 74
28 Deposit Loans and Overdrafts 74
29 Duplicate Pass Book 75
30 Nominations 75
31 Balancing of Books 75
32 Transfer of Accounts 75
Part – G: SWECCHA DEPOSIT SCHEME
1 Introductory 76
2 Eligibility 76
4 Duration of deposit 77
5 Deposit Receipt 77
6 Rate of Interest 77
7 Interest Provision 78
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9 Operative account for the applicant 78
10 Vouchers, Transaction Entry and Opening of Accounts 78
11 Withdrawals from the deposit accounts 79
12 Payment on maturity 81
13 Renewal of the deposit 81
14 Automatic Renewal 82
15 Loans against Sweccha Deposit 82
16 Premature closure of the account 83
17 Balancing of books 83
Annexures
I Model Ledger Sheet for Sweccha Deposit Account 84
Part – H: AB MONEY TIME (Fixed Deposits)
1 Introductory 85
4 Amount of Deposit 86
6 Rate of Interest and Payment of Interest 86
7 Premature cancellation and Loans against deposit 87
8 Transfer of Deposit to other branches 87
9 Nomination 87
10 Payment of deposit on maturity 87
11 GL Head and P&L (interest payment) Sub Head 87
Annexures
I Declaration 89
Part – I: AB TAX SAVER

(Fixed Deposits and Reinvestment Deposits)
1 Introductory 90
2 Who can make AB Tax Saver term deposits 90
3 Types of Term Deposit 90
7 Interest 91
8 Deposit Loans, Lien and Premature Cancellation 91
9 Transfer of Deposit 91
10 Nomination 91
11 Payment of deposit on maturity 92
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12 Income-tax 92
13 Term Deposit Receipt – Specific Contents and Duplicate 92
Receipt
Annexures
I Declaration 94
Part – I: AB TREASURE
(Fixed Deposits and Reinvestment Deposits)
1 Introductory 95
2 Eligibility 95
5 Application and other forms 95
6 Interest 95
7 Premature cancellation and Loans against deposit 96
Part – K: CAPITAL GAINS ACCOUNT SCHEME, 1988
1 Introductory and Eligibility 97

2 Types of Accounts 97
3 Period of the scheme 97
4 Opening of Account 97
5 Separate Identification for the Accounts 97
6 Opening more tan one account 98
7 Term Deposits 98
8 Duplicate Pass Book / Term Deposit Receipt 98
9 Transfer of Deposits from one branch to the other 98
10 Transfer of Deposit Amount in Account- B (Term Deposit) 98
11 Utilisation / Transfer of Funds in Account-A (SB Account) 98
12 Withdrawal from Accounts 99
13 Nomination to Deposit Accounts 99
14 Interest payable on these deposits 99
15 Charge or Alienation 99
16 Closure of the Accounts 101
Annexures
I FORM-A - Application for Opening of an Account 102

II FORM-B - Application for Conversion of Accounts 105
III FORM-C - Application for Withdrawal of amount from Account-A 107
IV FORM-D - Details regarding the manner and extent of utilisation 109
of the amount withdrawn from account
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V FORM-E- Form of Nomination under the Capital Gain Accounts 111
VI FORM-F - Application for cancellation or Change of Nomination 112
VII FORM-G- Application for Closing the Account by depositor 114
VIII FORM-H- Application for Closing the account by the Nominee / 116
Legal Heir of the deceased depositor.
******
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Part – A: Fixed Deposits
1. Introductory
1.1 Fixed deposits are deposits accepted for a fixed period. These deposits carry simple
interest payable periodically. The deposits are renewable at the option of the depositors.
1.2 These deposits are considered an ideal investment for the depositors since the
depositors earn assured, regular and fixed income on the deposits by way of interest.
Apart from others, these deposits are best suited for those people with some ingestible
surplus, like retired people or vendors of immovable property who want to keep their
terminal benefits/sale proceeds intact for meeting their recurring financial needs from the
interest earned thereon. Depositors, by giving standing instructions, can get the interest
earned on these deposits credited periodically to their operative accounts and/or to their
other accounts like Recurring Deposits.
1.3 Fixed deposits provide resources to the bank for lending. Good portion of the deposits is
generally renewed. Therefore, the bank is assured of continued availability of funds to
meet its lending activity.
1.4 Detailed guidelines with regard to various types of constituents are given in the chapter
on "Types of Constituents" of Manual of Instructions. The guidelines given in that
chapter should be followed in the case of fixed deposits also so far as they are
applicable.
1.5 The following guidelines should be regarded as supplementary to the instructions given
in Part-A and Part-B of the Chapter on "Guidelines on Deposits" in Volume-2 of the
Manual of instructions so far as they are applicable to Fixed Deposits.
2. Who can make Fixed Deposits

Fixed deposits may be accepted from:
i) a single person
ii) two or more persons payable to
a) all of them jointly, or

b) either or survivor or any one or survivor/s.
iii) minors represented by their guardians
iv) a major on behalf of a minor with the stipulation that the deposit is to be repaid to
the latter on attaining majority.
v) a sole proprietary concern or a partnership firm.
vi) a joint stock company, a club, a society or an association or a chartable

institution
vii) a Government/Quasi Government department etc.
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3. Know Your Customer (KYC)
Branches should observe the guidelines given in the booklet on "Guidelines to Branches
on Know Your customer (KYC) for identifying the applicants and the authorized
representative(ies), if any, of the applicants as well as for conducting the Customer Due
Diligence.
4. Amount of Deposits
4.1 The minimum deposit amount is Rs.100/- and there is no ceiling on maximum amount.
4.2 Fixed deposits can be accepted even for odd amounts.
5. Duration for the deposit
5.1 The minimum period for a fixed deposit is 15 days and the maximum is 10 years.
However, Fixed Deposit of Rs.1.00 lakh and above can be accepted for a period of 7 to
14 days also.
5.2 Branches may accept deposits for a period exceeding 10 years in special cases as
indicated under para No: 6.2 of Part-B "Guidelines on Term Deposits" of the Chapter on
“Guidelines on Deposits” in Volume-2 of the Manual of instructions.
5.3 Fixed deposits for less than six months duration should always be accepted for the
number of days to facilitate interest calculation.
5.4 Fixed deposits for more than six months duration can be accepted
i) in multiples of completed months where period of deposits consists of complete

months like 6 months, 9 months etc. or
ii) in multiples of completed months and the number of days in the incomplete
terminal month where the period of deposit consists of some complete months
and an incomplete month like., 8 months and 10 days, 9 months and 15 days
etc.,
6. Forms required for opening of an account
6.1 For new applicants:-
Where the applicant is new to the branch, the following forms in the prescribed format
and other indicated documents should be submitted
i) By individuals:-
a) Application Form for opening a Deposit Account (Individuals – Comp No:

10001)
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b) Personal Data Form (Comp No: 10021) – together with a recent passport
size photograph and documentary proof of identity and residential
address.
Note:- i) In case of Joint Applicants, each applicant should submit a

separate Personal Data Form together with enclosures as
stated above.
ii) In case there is a Guardian or Mandate holder or Power of

Attorney Holder, he should submit a separate Personal Data
Form for himself together with the enclosures as stated above.
c) Nomination Form – (DA1 – Comp No: 29108) – if Nomination facility is

required.
d) Optional Information Form – (Comp No: 10022) of the individual(s) where

the applicant(s)/representative(s) is/are willing to submit the form.
ii) By Organizations:-
a) Application for opening a Deposit Account (Organizations - Comp No:

10011) – together with stipulated documents establishing the legal
existence of the applicant and stipulating authority to open and handle
/deal with the account as explained in the Chapter “Types of
Constituents” and as applicable to the applicant.
b) Personal Data Form (Comp No: 10021) of each authorized

representative/signatory – together with a recent passport size
photograph and proof of identity and residential address.
c) Optional Information Form (Comp No: 10022) – of the representative(s)

where the representative(s) is/are willing to submit the Form.
6.2 For Existing Customers:-
Where the applicant is an existing customer who is properly identified and accepted as a
customer as per the KYC-AML guidelines, the following forms in the prescribed formats
should be submitted.
i) By Individuals:-
a) Application for opening a Deposit Account (individuals - Comp No: 10001)
b) Personal Data Form (Comp No: 10021) along with above mentioned
documents from new authorized signatory if any.
c) Nomination Form - (DA1 - Comp No: 29108) - if Nomination facility is

required.
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d) Optional Information Form - (Comp No: 10022) of individual(s) where
such a form is not obtained previously or where there is change in the
information provided earlier and where the applicant(s) / representative(s)
is/are willing to submit the form.
ii) By Organizations:-
a) Application for opening a Deposit Account (Organizations-Comp No:

10011) along with resolution/authority to open and deal with the account.
b) Personal Data Form From along with above mentioned documents from
each new authorized signatory if any.
c) Optional Information Form (Comp No: 10022) of the representative(s)

where such a form is not obtained previously or where there is change in
information provided earlier and where the representative(s) is/are willing
to submit the Form.
6.3 The Forms should be completely filled in and signed in the presence of officials of the
bank.
7. Permanent Account Number (PAN) or Form 60 or 61 and Tax Deduction

Account Number (TAN)
7.1 Every Individual customer who is an applicant or joint applicant or an authorized

signatory should quote his/her Permanent Account Number (PAN) in the Personal Data
Form.
Every organization should quote its Permanent Account Number (PAN) in the
Application for Opening of the Deposit Account.
7.2 A Xerox copy of the PAN Card or IT Assessment Order containing PAN should be
submitted along with the original PAN Card/IT Assessment Order. Original should be
returned after verification of the copy.
7.3 In case a person does not have Permanent Account Number, he should submit a
declaration in Form No.60 in duplicate.
7.4 In case a person has agricultural income and is not in receipt any other income
chargeable to tax, he should submit a declaration in Form No.61 in duplicate.
7.5 Complete details on quoting of PAN, submission of declarations in Form 60 and 61and
submission of the copies of Form 60 and 61 to the Commissioner of Income Tax are
given in paragraph no. 1.6 of Part-A - “Cash Receipts and Payments” of the Chapter on
CASH of the Manual of Instructions. Formats of Form No: 60 and 61 are given as
Annexure No: I and II to Part-A of the said chapter.
7.6 Every organization having Tax Deduction Account Number (TAN) should quote the
Number in the Application Form for opening the Deposit Account. If organization does
not have TAN, the words "Not available" may be written in the place provided for quoting
the Number.
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8. Terms and Conditions of the Deposit Scheme
8.1 Printed Booklets/Pamphlets embodying the rules governing the scheme are separately
supplied to branches for distribution to the constituents. Changes in rules by way of
additions, deletions and modifications etc advised by Head Office from time to time
should be incorporated in all the copies on hand and only copies thus amended should
be distributed to the constituents. It is necessary to distribute these amended copies to
existing account holders also from time to time.
It may be noted that the Application for opening the Deposit Account contains a
declaration of the applicant(s) that he/they accept(s) the Terms and Conditions of the
deposit scheme which are provided to him/them. The declaration constitutes
acknowledgement for receiving the Terms Conditions of the deposit scheme.
8.2 Branches should maintain a set of Terms and Conditions relating to Fixed Deposit
Accounts in a separate file. Branches should update the Terms and Conditions with all
communications regarding modifications received from Head Office/Controlling Office
from time to time. Copies of such communications should also be held in the same file.
Branches should communicate the changes in the Terms and Conditions to the
customers.
8.3 All important matters of the Terms and Conditions together with date of effect should be
displayed prominently in the Notice Board at the branch for information to the customers.
9. Customer Acceptance Policy (CAP)
9.1 No account should be opened in anonymous or fictitious / benami name(s).
9.2 For new applicants the guidelines given under "Customer Acceptance Policy (CAP)" in
the booklet on "Guidelines to Branches on Know Your Customer (KYC)" should be
followed.
10. Customer Identification Procedure (CIP)
10.1 Customer Identification Procedure covers identification of the Individuals and entities
and also the authorized representatives such as Guardian, Mandate Holder, Power of
Attorney Holder, Karta, Major Coparceners, Proprietor, Partners, Directors, Management
Committee Members, Executives, Officials etc.,
10.2 The guidelines given in respect of Customer Identification Procedure (CIP) in booklet on
"Guidelines to Branches on Know Your Customer (KYC)" should be followed.
11. Verification of the Forms
11.1 An officer of the branch should verify the Application Form for opening of the Deposit
Account and the Personal Data Form(s) to ensure that
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i) the Application Form for opening of the deposit account is in the prescribed
format, filled in completely, type of account to be opened is indicated correctly
and signed
ii) the Personal Data Form(s) is/are in the prescribed format, filled in completely,
signed and recent passport size photograph(s) and copies of documentary proof
of photo-identity card and residential address as stipulated are submitted
therewith.
iii) originals of the documentary proof of photo-identity card and residential address
are also submitted
iv) all the Forms, Declarations, copies of Partnership Deed, Certificate of

Incorporation, Certificate of Registration, Certificate of Commencement of
Business, Notification, Resolution, Power of Attorney in respect of authority to
open and deal with the account etc., as are applicable to the applicant and
stipulated for different types of constituents in the Chapter "Type of Constituents"
of the Manual of Instructions are submitted.
11.2 The names and the photograph of the person(s) should be verified with the names and
photo(s) available on the photo-identity card(s). The addresses mentioned in the
Personal Data Forms should be verified with the addresses given in the relative
documentary proof.
11.3 The Forms and Declarations submitted by the organizations should be verified to ensure
that the same are filled in completely and signed. Copies of Partnership Deed,
Certificate of Incorporation, Notifications, Resolution, Power of Attorney etc., should be
verified with the respective originals.
11.4 The name and activity of the organizations and authority to open and deal with the
account should be verified with the relative documents.
11.5 The Nomination Form, if any, should also be verified to ensure that the same is
completely and correctly filled in and signed.
11.6 The verifying officer should sign, in full, in the Application for opening the Deposit
Account and Personal Data Form(s) at the place provided in token of verifying the
Forms.
11.7 The officer should sign on (i) the copies of the documentary proof of photo-identity
card(s) and residential address(es), (ii) copy of PAN Card/IT Assessment Order and on
(iii) the copies of other documents in token of verifying with the respective originals. The
originals of the documents should be returned after verification.
11.8 Wherever Optional Information Form is submitted, the same should be verified to ensure
that it is filled in completely and signed.
11.9 The verifying officer should affix a rubber stamp containing his name and specimen
signature number below his signature on all the Forms.
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12. Risk Categorization
12.1 Risk level should be arrived at for every applicant, whether Individual or organization, as
Low Risk or Medium Risk or High Risk category.
12.2 Branches should arrive at the Risk Level basing on the information provided in the
Application for opening of the deposit account, in the Personal Data Form and also in the
Interview and Customer Due Diligence Form and also basing on the Risk Categorization
Job Card given as Annexure No: III to the Chapter on "Current Deposit Accounts" in this
Volume of the Manual of Instructions.
13. Customer Due Diligence (CDD)
13.1 The Customer Due Diligence Form (Comp No: 10002 for individuals and Comp No:
10012 for organizations) should be used for recording the exercise of Due Diligence in
accepting / rejecting a customer.
13.2 An officer should interview the applicant(s)/authorised signatory(ies) and record the
information collected in the Customer Due Diligence Form and obtain the signature(s) of
the applicant(s)/authorised signatory(ies) in the Form at the place provided for the same.
The Officer should sign in the Form at the place provided and put up the Form together
with the set of other Forms and enclosures to the Branch Manager/Branch Head or to
any other senior officer for giving his decision on accepting/rejecting the Application.
13.3 The Branch Manager/Branch Head or a senior officer should examine the Forms and
other documents placed before him and also interact with the applicant(s)/authorized
signatory(ies) and arrive at the decision to accept/reject the application.
13.4 The Branch Manager/Branch Head or the senior officer should arrive at the Risk Level
for the account. He should record his decision and the risk Level in the Customer Due
Diligence Form. He should sign in the Form at the appropriate place.
13.5 The Branch Manager/Branch Head may take a decision not to open the account where
the branch is unable to apply appropriate customer due diligence (CDD) measures i.e.
the branch is unable to verify the identity and/or obtain documents required, due to non
cooperation of the applicant(s) / authorized signatories or due to non reliability of the
data / information furnished to the branch.
13.6 The decision not to open an account should not be taken by any officer below the level
of the Branch Manager/Branch Head. Where a decision not to open an account is taken,
reasons for the same should be clearly recorded in the Customer Due Diligence Form.
The Branch Manager/Branch Head should sign in the Form at the appropriate place.
In such a case copies of all Forms submitted together with copies of all enclosed
documents should be kept on record for future reference and to safeguard interest of the
bank if any complaint arises.
13.7 The Branch Manager/Branch Head/Senior officer should affix a rubber stamp containing
his name and specimen signature number below his signature on the Customer Due
Diligence Form.
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14. Permission to open the Account
The Branch Manager/Branch Head or any other senior officer after conducting the
Customer Due Diligence and giving permission to open the account as stated above
shall send the Forms to an operator/officer for accepting the deposit amount and
opening the Account as well as for creating the Party Master(s) in the system wherever
required.
15. Voucher for accepting Deposit Amount
15.1 The operator/officer should verify the Application Form to ensure that it contains
permission of the Branch Head/Manager/Senior Officer for opening of the deposit
account. Thereafter he should prepare a Credit Voucher writing the following details
therein clearly.
Credit: Fixed Deposits (Others) – GL Code 1150

Date: Date of transaction
By: _(Name(s) of the depositor(s))_ in Fixed Deposit No: (to be filled in after the
account is opened)_ for a Period of _(days, months, years etc)_ at the Rate of
_(applicable rate of interest)_ % p.a. maturing on _(due date)_ as per the
Application submitted herewith.
Rs. The amount of deposit in figures.
Rupees: The amount of deposit in words.
15.2 An account can be opened through a cash transaction or through a transfer transaction.
15.3 If the deposit is to be made through a cash transaction, the operator/officer should retain
the word "Cash" and strike off the word "Transfer" at the right hand top corner of the
voucher.
He should retain with him the Application Form and the enclosed documents. He should
obtain the signature of the applicant on the Voucher at its right hand bottom corner. He
should handover the voucher to the applicant with an advice to note the cash
denominations on the reverse of the voucher and to deposit the cash at the cash
counter.
16. Acceptance of Cash for the Deposit Account
16.1 The applicant should tender the credit voucher together with the cash to the operator at
the cash counter / single window counter.
16.2 The operator should receive the voucher and the cash from the applicant and attend to
the transaction in accordance with the procedural guidelines given under para No: 4 of
Part-A of the Chapter on Cash of the Manual of Instructions. The following are
exceptions to the general procedure, which the operator should observe.
i) The operator should not enter the GL Number and the Deposit Account Number
in the system for the cash transaction entry. These shall be entered after the
deposit account is opened in the system.
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ii) The operator should note the Scroll Number of the transaction at the right hand
top corner of the voucher.
16.3 The operator should sign on the voucher and send the voucher to an operator/officer for
doing the needful.
17. Opening of the Deposit Account – through a Cash Transaction
17.1 On receiving the Cash Received credit voucher, an operator or an officer should open
the Term Deposit Account in the system through the Term Deposit Opening option.
Appropriate Account Type (eg., FDR for fixed Deposits KTD for Kalpataruvu Deposits)
and Sub Type (like 01 for General Public, 02 for Staff and 22 for Senior Citizens) should
be entered in the screen. The system picks up the Term Deposit Receipt Number from
the stationery details loaded in the system.
Account should be linked to the Party Code(s) of the applicant(s). In case the
applicant(s) is/are existing customer(s) of the branch, the account should be linked to
his/her/their existing Party Code. If the applicant(s) is/are not the existing customer(s),
new Party Master(s) should be created for him/her/them and linked to the account.
All other relevant particulars such as Automatic Renewal, TDS Exemption, Joint Deposit,
Repayable to, Nomination, Safe Custody, Interest Payment Option and Interest Payment
Instructions etc., should be entered in the relative fields in the Deposit Account Opening
Screen.
Where the deposit is accepted under Automatic Renewal Scheme, the letter Y should be
entered in the relative field. "Number of times" the deposit is to be renewed automatically
should be entered in the relative field.
If the deposit is not under Automatic Renewal Scheme, the letter N should be entered in
the field.
17.2 The amount of cash received as indicated in the relative voucher should be entered in
the "Amount received in cash" field of the screen. Then Cash Scroll Number as entered
by the cashier on the voucher should be entered in the relative field.
The Term Deposit Receipt Number indicated by the system should be noted on the
credit voucher and on the Application Form.
The Deposit Entry should be saved. On saving the deposit entry, the system raises a
Cash Batch for the Deposit by taking the amount from the Cash Scroll Number
generated at the time of receiving the cash.
Where an operator attends to the activity of opening of the deposit account an officer
should authorize the Deposit Opening entry. Where an officer attends to the activity of
opening of the deposit account another officer should authorize the Deposit Opening
entry. The officer should use the "DP" option in the Deposit Authorisation Menu for
authorizing the deposit opening entry.
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The operator or the officer who attends to the activity of opening of the account and the
officer who authorises opening of the account should sign on the credit voucher
respectively in token of entering and passing the same and also in the Customer Due
Diligence form at the place provided for signatures.
18. Opening of the Deposit Account – through a Transfer Transaction
18.1 An account would be required to be opened through a transfer transaction in the

following circumstances.
i) Where the applicant maintains an operative account with the branch and desires
to transfer funds from the operative account to the term deposit account.
ii) Where the applicant maintaining account with another branch/bank and desires
to transfer funds from such branch/bank for to the Term Deposit Account.
iii) On transfer of a Term Deposit Account from another branch.
Where cheques, Demand Drafts etc, are tendered for placing the amount in Term
Deposits the guidelines given in para no: 16 of Part-B "Guidelines on Term Deposits" of
the chapter "Guidelines on Deposits" involume-2 of the Manual of Instructions should be
observed.
18.2 Procedure to be observed for opening of term deposit account in the above
circumstances is separately explained in the following paragraphs.
18.3 Where the applicant maintains an operative account with the branch:-
i) A cheque drawn by the applicant on his account with the branch payable to the
bank as "Yourselves" for the deposit amount should be obtained.
The cheque should be verified in the manner explained under para No: 33.4 of
the chapter on "Current Deposit Accounts" of this volume of the Manual of
Instructions.
In case of Savings Bank accounts where the applicant does not have cheque
book facility, a debit voucher should be prepared for transfer of the amount from
his account to the Term Deposit Account. Signature of the applicant should be
obtained on the right hand bottom corner of the voucher.
A credit voucher should be prepared with the narration as stated in the above
paragraph No: 15.1. The cheque or the debit voucher and the credit voucher will
form a set of transfer vouchers.
"Transfer" stamp of the branch with current date should be affixed on the set of
transfer vouchers.
ii) The Term Deposit Account should be opened in the system duly following the
procedure explained under above para No: 17.1.
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The field meant for "Amount received in cash" should be skipped by pressing the
Enter Key.
There is no need to debit the operative account separately. The amount of the
deposit should be entered in the "Amount transferred" field of the screen. The
Operative Account number should be entered in the relative field. The cheque
Number should also be entered in the relative field where a cheque is available.
iii) The Term Deposit Receipt Number indicated by the system should be noted on
the credit voucher and on the Application Form.
iv) The Deposit Entry should be saved. On saving the deposit entry, the system
raises a Transfer Batch for the Deposit by taking the amount from the relative
account.
v) The transfer batch number should be noted on the Cheque/Debit Voucher and
also on the Credit Voucher.
vi) Where an operator attends to the activity of opening of the deposit account an
officer should authorize the Deposit Opening entry. Where an officer attends to
the activity of opening of the deposit account another officer should authorize the
Deposit Opening entry. The officer should use the "DP" option in the Deposit
Authorisation Menu for authorizing the deposit opening entry.
vii) The operator or the officer who attends to the activity of opening of the account
and the officer who authorises opening of the account should sign on the
cheque/debit voucher and also on the credit voucher respectively in token of
entering and passing the same and also on the Customer Due Diligence Form at
the place provided for the signatures.
18.4 Where the applicant maintains account with another branch/bank and desires to transfer
funds from such branch/bank for credit to the Term Deposit Account:-
i) A cheque drawn by the applicant on his account with the other branch / bank
payable to "Andhra Bank, Branch Name A/c Applicants' Name" for the
deposit amount should be obtained.
The cheque should be verified in the usual explained for collection of local /
outstation cheques in the relative chapters of the Manual of Instructions.
ii) In case the cheque is drawn on any branch of our bank having net-work
connectivity with the branch, the cheque may be routed through Any Branch
Banking facility for payment.
In case the cheque is a Multi City Cheque of a branch of our bank, it should be
collected through Multi City Cheque facility.
The amount of the cheque should first be collected for credit of Sundry Creditors
Account. For crediting the amount to the Sundry Creditors Account a credit
voucher should be prepared with full narration of the transaction and details of
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the cheque. For putting through the transaction the procedure stipulated for Any
Branch Bank transactions should be observed.
Thereafter a Debit Voucher should be prepared for debit to Sundry Creditors
Account and a credit Voucher should be prepared for credit to the Term Deposit
Account for the amount of deposit amount held in Sundry Creditors Account with
full narration of the transaction in the vouchers. The vouchers form a set of
Transfer Transaction.
transfer vouchers.
For opening of the deposit account the procedure given in the above para Nos:
18.3 (ii to vii) should be followed.
However, the amount of the deposit should be entered in the "Amount
transferred" field of the screen. The field meant for Operative Account number
should be skipped by pressing "Enter Key". The GL Code Number (1380) of
Sundry Creditors Account should be entered in the GL No: field.
iii) In case the cheque is drawn on any branch of our bank not having the network
connectivity or in case the cheque is drawn on another bank, the cheque should
be sent to the other branch/bank through clearing or on collection basis
depending upon whether it is a local cheque or an outstation cheque. The
relative guidelines should be followed in this regard.
The amount of the cheque realized through clearing/collection should be credited
to Sundry Creditors Account. The amount should thereafter be reversed from
Sundry Creditors Account for placing in the Term Deposit Account. For this
purpose the procedure given in the above para No: 18.4 (ii) should be followed.
18.5 On Transfer of Deposit from another branch:-
i) The proceeds of the deposit would be received from the transferor branch
through an "Account Payee" Demand Draft drawn payable as "Yourselves
account Mr/Ms/M/s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ along with several
enclosures as stated under para No: 28 of Part-A of the Chapter "Guidelines on
Deposits" in Volume-2 of the Manual of Instructions.
In case of Term Deposits one of the enclosures to the Demand Draft is the "Term
Deposit Transfer Schedule". The Schedule contains full information about the
deposit and also the details about Interest Accrued, Interest Paid, Income Tax
Deducted etc.
ii) On receipt of proceeds of the deposit, fresh Application Form and other related
forms should be obtained from the depositor.
The depositor should be identified and accepted in accordance with the KYC
guidelines unless he is an existing customer of the branch and the KYC
guidelines are already applied to him.
iii) After completion of the formalities under KYC guidelines the Demand Draft
should be responded for opening of the deposit account.
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iv) A credit voucher should be prepared with the narration as stated in the above
paragraph No: 15.1. Description about principal amount and the amount of
interest accrued should be separately shown in the narration and the amounts
should be separately shown in the amount column of the voucher.
The Demand Draft and the credit voucher form a set of Transfer Transaction.
transfer vouchers.
v) The Term Deposit Account should be opened in the system duly following the
procedure explained under above para No: 17.1.
Branch Code of transferor branch should be entered in the relative field.
The original amount of the deposit (Principal Amount) should be entered as the
"Deposit Amount" and not the amount transferred.
Other particulars such as Interest Accrued amount, interest accrued paid up to

date, Interest amount Transferred should be entered in the respective fields
correctly.
vi) The Term Deposit Receipt Number indicated by the system should be noted on
the credit voucher and on the Application Form.
vii) The Deposit Entry should be saved. On saving the deposit entry, the system
raises a Transfer Batch for the Deposit by taking the amount from the IBR DDs
Paid Account.
viii) The transfer batch number should be noted on the Demand Draft and also on the
Credit Voucher.
ix) Where an operator attends to the activity of opening of the deposit account an
Deposit Opening entry. The officer should use the "DP" option in the Deposit
Authorisation Menu for authorizing the deposit opening entry.
x) The operator or the officer who attends to the activity of opening of the account
Demand Draft and also on the credit voucher respectively in token of entering
and passing the same and also on the Customer due diligence form at the place
provided for the signatures.
19. Opening of Multiple Deposit Accounts with a Single Cheque
A branch may be required to open more than one deposit account by debiting the
account of the applicant with a single cheque. For the purpose the following procedure
should be followed.
i) Separate Application Forms should be obtained for each deposit.
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ii) In case of individuals, separate Nomination Forms should be obtained for each
deposit.
iii) Separate credit vouchers should be prepared for each deposit with full narration
of the deposit.
iv) The Cheque and the credit vouchers form the set of Transfer Transaction.
v) The Cheque should be debited to the operative account of the applicant through
"Normal Transaction Entry Option" giving the voucher type as "TD". Batch
Number of the transfer transaction should be noted on the Cheque. The batch
should be exited without balancing the same.
vi) The transaction Batch Number should be noted on the credit vouchers.
vii) A Deposit Account should be opened through the Deposit Opening Option duly
following the procedure explained above for transfer transactions.
In the "Source of Funds" in the "Amount Transferred" field the deposit amount
should be entered. The Batch Number of the Transfer Transaction should be
entered fin the relative field.
The Deposit Entry should be saved.
The above procedure should be followed for all the deposits to be opened with
the same cheque.
viii) After opening the multiple deposits as above, the Deposit Accounts should be
authroised through "DP" option.
ix) In the "DP" option, one of the deposits opened in the sequence should be
selected and authorised.
x) The system displays the particulars of all the multiple deposits opened one after
another.
xi) If one deposit is authroised all the deposits in the sequence together with the
debit transaction will get authorised in one stroke. There is no need to authorize
the debit entry to the operative account of the applicant separately.
xii) The other procedural requirements are same as in the case of opening single
deposits accounts remain same and the same should be followed.
20. Printing/Preparing and delivery of the Deposit Receipt
20.1 For printing/preparing the deposit receipt the procedure mentioned under para Nos: 19,
20, 21 and 23 of Part-B "Guidelines on Term Deposits" of the Chapter "Guidelines on
Deposits" in Volume – 2 of the Manual of Instructions should be observed.
20
20.2 Fresh Deposit Receipt should be printed/prepared in the case of deposits transferred
from other branches.
20.3 Deposit Receipts should be delivered to the depositor against acknowledgement on the
reverse side of the relative credit voucher. The guidelines contained under para No: 24
of Part-B "Guidelines on Term Deposits" of the Chapter "Guidelines on Deposits" in
Volume – 2 of the Manual of Instructions should be kept in view in this regard.
21. Interest Payment Frequency
Interest on fixed deposits can be paid at quarterly or longer rests. In the absence of
specific instructions from the party, branches should pay interest on Financial half yearly
basis i.e., as at the end of September and March every year.
At the time of opening the deposit the option of the depositor should be correctly entered
in the system. In the field meant for "Interest payment frequency" the letter M for monthly
payment, Q for quarterly payment, H for half-yearly payment and F for full payment on
maturity should be entered.
For deposits of the period below six months, 'F' should be entered since the interest is
paid in full on maturity only.
In the field meant for "First interest amount to be paid up to", the relevant date should be
entered.
Example:-
For a deposit opened on 9-8-2006 for 24 months for which monthly payment of interest
is opted for. The "Interest payment frequency" will be M and "First interest amount to be
paid up to" will be 31-08-2006. The system allows payment of first periodical interest on
01-09-2006 and on 1st of every month till the deposit is matured or prepaid. "First
interest amount to be paid up to" should be entered for all deposits of the period more
than 6 months.
The system calculates periodical amount of interest. If the periodical interest is to be
credited to an operative account, the particulars of such an account should be entered in
the field meant for "Interest payment instructions".
22. Calculation and Posting of half-yearly interest – Procedure
22.1 It should be ensured that TDS parameters are set correctly for all accounts.
22.2 "Interest/Charges"→→"TD Interest" option is available in Office Menu. Through this option,
other options like Deposit Interest Calculation, Report Generation, TDS Calculation, TDS
Report Generation and Interest Posting can be selected.
22.3 The following steps are involved in calculation of interest.
i) Deposit Interest Half Yearly Calculation (FD/KTD/PJCC/CC) should be selected

and the current SOD date should be given in the field meant for "Calculation
Date".
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ii) A/C Type should be entered as FD, KTD, PJCC or CC in the field meant for
"Deposit A/C Type".
iii) Half Year ending date i.e., the date up to which interest is to be calculated,
should be entered in the field meant for "Calc up to date".
iv) The letter Y should be entered to proceed for calculation of interest.
v) Thereafter the option "INT Accrual/Payable Calc Report" should be selected to

generate the report. The Report shows the amount of interest calculated for each
account under the selected Deposit A/c Type. The system does not calculate
TDS at this stage
vi) The Report should be verified.
vii) While verifying the Report the date in "Last Interest Accrued up to date" should
be verified to ensure that it is not initialized for some accounts, particularly Fixed
Deposits having Yearly Interest Frequency".
If it is initialized, it should be corrected by using the "Document for Correction of

Last Interest Accrued Up to Date for Fixed Deposit Accounts".
After making necessary corrections, calculate interest once again and generate
the report before proceeding further.
viii) The option "TDS Calc on Dep Acc Int" should be selected for calculation of TDS
for all accounts, which come under TDS purview.
a) When the option is invoked, the system prompts to "Enter accrued

interest Calculation Date". "Enter Key" should be pressed. The system
picks up the current date.
b) The last date of the half-year should be entered in the field "Enter Interest
accrued Up to Date".
c) The letter Y should be entered in the field "Want to calculate TDS for acc
interest Y/N" so that TDS is calculated on all the accounts which come
under TDS purview.
ix) After completion of TDS calculation, the TDS Report should be generated by
selecting the option "TDS Calc on Acc Int Report". the Report should be verified
to ensure that TDS is correctly calculated for the accounts which come under
TDS purview and that TDS is not recovered for the accounts which are exempt
from such recovery.
a) If any discrepancy is noticed for an account, the reason may be that the
IT Status Code for the account is not correctly given. This should be
verified and changed. The change can be effected through "Party Master
Maintenance → Modification option". "Party IT Status Details" option can
be used for changing the IT Status if such an option is available at the
branch.
22
b) After making the required changes in IT Status Codes, the whole exercise
of calculation of interest should be restarted from stage ONE i.e., para
No: 22.3 (i).
x) If all TDS calculations are correct the option "Dep Accrued/Payable Interest
Positing" should be invoked for posting the interest amounts.
22.4 Branches should complete the above-mentioned exercise of Interest calculation, Report
generation, TDS calculation and TDS Report generation except Interest Posting well in
advance and verify the interest and TDS calculations.
If the interest and TDS calculations are found to be correct, on the date of interest
posting, immediately after SOD complete the exercise of Interest calculation, Interest
Calculation Report generation, TDS calculation and TDS Report generation including
Interest Posting for each Deposit Account Type separately one after the other.
It may be noted that once interest is posted it no not possible to go back and hence
branches should verify the interest and TDS calculations thoroughly before posting of
interest.
The system generates an entry as under for posting of the interest.
Debit: P&L – Interest paid on FD

Credit: Interest Payable Time (FDR)–with net amount of interest (i.e. interest – TDS)
Credit: Sundry Creditors – with the amount of TDS
22.5 It should be ensured that there should not be any time lag between interest calculation
and posting since in between, if any account is closed and interest there on is paid, it
would lead to GL Tally Test Difference.
22.6 On the last working day of the Half Year, branches should once again go for interest
calculation and posting by completing all the above stated stages to ensure that interest
is calculated and posted on all accounts opened after posting of interest on the
scheduled date.
22.7 In case the interest calculated is found to be abnormally high for some accounts, there
may be some thing wrong with the data. In such cases, data should be corrected first
before proceeding for interest calculation and posting. Branches may take assistance
from the officers in the ZCC in such cases.
22.8 The system may not calculate interest for accounts for which "Frequency of Interest
Payment" is Yearly or Final or user defined interest frequency. Therefore Provision
should be maintained for interest payable for such account for the half year ending.
For the purpose of arriving at the amount of such provision the option "Provision RPT for
FD Interest" available in Officer's Menu Interest/Charges→TD Interest should be
invoked.
An entry should be passed on the last day of the half-year as under for the amount of
provision by preparing appropriate vouchers.
23
Debit: P&L Interest Paid on FD
Credit: Sundry Creditors – Provision for interest payable on FD
The entry should be reversed on the first day of the following half-year.
22.9 At the end of each half year, the aggregate amount of interest on all Fixed Deposits is
held to the credit of ‘Interest Payable Time–FDR’ as stated above. On the first working
day of the succeeding half year, the amount of interest is reversed to the credit of
‘Interest Payable Demand -FDR’.
23. Payment of Half Yearly Interest
23.1 In respect of accounts for which the "Interest Payment Frequency" is half yearly, the
interest for any "Financial Half Year" can be drawn by the depositor during the
succeeding financial half year. The payment of interest, in such cases, will be to the
debit of "Interest Payable Demand Account – FDR".
23.2 The un-drawn interest lying in Interest Payable Demand Account does not carry any
interest. Depositors should be educated in this behalf. The depositors who do not intend
to draw half yearly interest on their deposits may be advised to open other deposits
under reinvestment scheme like Kalpatharuvu, Cash Certificate etc to have the benefit of
compounding interest.
The amount held in Interest Payable Demand Account is classified as "Demand Liability"
of the bank since it should be paid to the account holder on demand.
24. Payment of Quarterly interest
Payment of quarterly interest on fixed deposits on pro rata basis at the end of calendar
quarters is permitted. However, for the first incomplete quarter, if any, interest should be
paid on pro rata basis.
25. Payment of monthly interest
25.1 If the depositor so chooses, the interest on fixed deposits can be paid even at monthly
intervals. In all such cases, the monthly interest on pro rata basis, at discounted value,
should only be paid. IBA guidelines in this behalf are as follows:
“While Banks should calculate interest on quarterly or longer intervals, as required in

terms of RBI directive, it would be open to them to pay interest to the depositors on a
monthly basis, provided however, that the amount of interest paid every month is not
more than the discounted value of the interest for one month so that even if interest is
allowed on the interest so paid, the aggregate amount (i.e., amount of interest paid
monthly, together with the interest that may accrue on the amount so paid in one month)
would not exceed one month’s interest on the deposit calculated on a quarterly basis.”
25.2 The formula for calculating monthly interest at discounted rate is inbuilt in the system as
a parameter.
24
26. Interest Payment
26.1 Excepting where standing instruction for crediting of periodical interest to operative
accounts are given, depositor should call at the Bank and produce the deposit receipt to
receive payment of interest due thereon. In the alternative, depositor may send his
deposit receipt through his representative together with a letter of authorization in favour
of the latter. The specimen of the representative’s signature, duly attested by depositor,
should be furnished in the letter of authorization for the purpose of identification.
26.2 For payment of interest in cash, a debit cash voucher should be made out and the same
should be signed by the depositor or his representative, as the case may be. The debit
cash voucher should bear Revenue Stamp of Rs.1.00, if the amount of interest paid
exceeds Rs. 5000/-
26.3 The option "FD Interest Payment (Single A/c)" only should be used by branches for
direct payment of FD Interest. FD interest should not be paid by debiting IPD GL or P& L
Interest paid on FD through Normal Entry option.
26.4 The fact of payment of interest should be noted on the reverse of the deposit receipt
under the initials of the concerned officer except in cases where standing instructions
are given.
26.5 Interest on fixed deposits, against the security of which deposit loans are outstanding,
should be credited to the relative deposit loan accounts only. Any standing instructions
given for crediting of such interest to operative accounts stand suspended during the
currency of the deposit loan account.
26.6 No interest shall be paid on the subsidy amount of PMRY placed as FDR.
27. RBI/IBA Guidelines on calculation of interest
27.1 The following are the guidelines of RBI/IBA with regard to calculation and payment of
interest. Branches should scrupulously follow these instructions.
27.2 Interest on deposits where the terminal period (month / quarter / half year etc., as the
case may be) is incomplete shall be paid on maturity.
27.3 On deposits repayable in less than 3 months or where the terminal quarter is incomplete
interest would be paid for the actual number of days on the basis of 365 days in a year.
27.4 Where the interest is paid at discounted value on monthly basis during the currency of
the deposits: If the terminal quarter or half year consists of one month (ex: 37 months)
interest therefor (i.e.37th month) shall be paid at actuals i.e., one third of quarterly or one-
sixth of half yearly interests).
28. Standing instructions
28.1 To obviate the need for coming to the branch and present the deposit receipt every time
when interest is to be drawn, the depositors may be advised to give standing instructions
for crediting of periodical interest to their operative accounts.
25
28.2 For giving standing instructions in this behalf, suitable provision has been made in the
deposit application itself. Such instructions, however, can also be given by way of a
separate letter.
28.3 Whenever standing instructions with regard to payment of periodical interest are given
the interest table on the reverse of the concerned deposit receipt should be cancelled
and a note in the following style should be made on the reverse of the deposit receipt.
“Accrued interest is credited to depositor’s SB/Abhaya/Current A/c. No _ _ _ _ _ _ etc,

as per standing instructions.”
28.4 A note regarding standing instructions should be made on the face of the deposit receipt.
28.5 Standing instructions for payment of periodical interest, whenever given are to be noted
in a separate register and acted upon. The guidelines on Standing Instructions given in
Part-A of the Chapter on "Guidelines on Deposits" in Volume-2 of the Manual of
Instructions should be followed.
29. General Aspects
29.1 If the depositors so choose, interest on Fixed Deposits can also be paid for a period of 6
months / 3 months from the date of the deposit instead of as at the end of financial half
year/calendar quarter.
29.2 All fixed deposit accounts are transferable from one branch to another branch. Branches
should follow the guidelines given in Part-A of the chapter on “ Guidelines on Deposits”
in Volume-2 of the Manual of Instructions.
29.3 Loans / Overdrafts facilities can be allowed against the security of Fixed Deposits of the
Bank subject to rules in force.
29.4 Nomination facility is available in respect of fixed deposits. Branches should follow the
procedure given in Part-A of the chapter on “Guidelines on Deposits” in Volume-2 of the
Manual of Instructions.
29.5 In respect of deduction of TDS, payment of deposit in cash where principal plus interest
is for Rs.20,000/- and above etc., branches should follow the guidelines mentioned in
Part-B of the chapter on "Guidelines on Deposits" in Volume-2 of Manual of Instructions.
29.6 Jottings for Fixed Deposit accounts should be taken once in a Quarter from the system
and it should be checked and signed by the Officer concerned and Manager.
29.7 IPD breakup reports should be invariably printed as a part of EOD process and the
reports should be verified regularly and if difference is noticed on any day, it should be
attended to immediately.
29.8 If there is a need to pass GL entries, it should be done with the knowledge of Branch
Manager.
26
29.9 The date of the FDR created out of subsidy amount of PMRY will be the date on which
the last instalment of the loan is disbursed by the branch.
29.10 In respect of short term fixed deposits received from the following institutions, branches
may pay interest at special rates, as communicated by Head Office from time to time.
i) Banks registered under Regional Rural Banks Act, 1976

ii) Banks registered under Banking Regulations Act, 1949.
However, special rates of interest should not be allowed on fixed deposits received form
Cooperative Rural Banks registered under State Cooperative Societies Acts.
29.11 Branches are not permitted to accept any deposit at a rate of interest higher than what is
permitted under circulars issued by Head Office, except as stated in the above
paragraph. However, branches/ZonaI Offices may be permitted by the Head Office to
accept deposits at higher rate of interest (preferential rate of interest). Branches holding
such deposits should report the same specifically in the returns for MIS purposes.
29.12 Branches/Zonal Offices have to seek prior approval from General Manager (Funds &
Forex) for accepting any domestic term deposit of Rs.5.00 Crore and above either for
renewal or fresh deposits. This stipulation is applicable for deposits to be accepted /
renewed even under normal rate of interest.
30. Closure of Deposits
30.1 The deposits need to be closed for different purposes as under.
i) Closure on maturity for repayment to the depositor.

ii) Closure for renewal of the deposit
iii) Premature closure
For closure of the deposit the depositor should surrender the Deposit Receipt duly
signing at the appropriate place on its reverse side with a discharge. The signature of
the depositor should tally with his specimen signature available on record. The
guidelines given under para No: 32 of Part-B "General Guidelines on Term Deposits" of
the chapter "Guidelines on Deposits" in Volume-2 of the Manual of Instructions should
be followed.
30.2 The following are the steps for closure of a deposit account.
i) Deposit Repayment Entry option should be invoked and "A" should be selected
for Entry.
ii) The Deposit Number should be entered in the relative field.
iii) If any TDS is required to be recovered as per the parameters given for the party,
the system calculates the TDS amount and surcharge and displays the same.
If the TDS amount is found to be wrong or if the party is exempt from Tax
deduction, the error may be due to marking IT Status wrongly for the party.
27
At this stage the amount of TDS should not be modified or made Zero. The entry
should be cancelled and the operator/staff should come out of the screen. If the
TDS amount is modified, it will not have any effect.
Therefore, the IT status of the party should be verified and corrected and then
closure of the account should be attempted once again.
iv) The system displays the net amount payable on closure in the field "Amount to
be marked for renewal".
v) Suitable options as under should be selected for repayment/renewal of the net

amount.
30.3 If the net amount is to be renewed in full as a fresh deposit, the "Enter Key" should be
pressed in the field.
If partial amount is to be marked for renewal, the required amount should be entered in
this field by correcting the amount already shown by the system.
The system raises an unbalanced Transfer Transaction for closure of the deposit.
A new Deposit Account should be opened in the system. The details of the old deposit
should be given in the relative fields. The amount earmarked for renewal as above
should be entered as the "Amount of Deposit" for the new deposit.
The system raises a transfer transaction to the credit of the newly opened deposit
account in the same transfer batch where the closure transaction is available. With this
the transfer batch gets balanced. The transaction would be as under.
Debit: Fixed Deposit Account with amount of the deposit.

Debit: Interest Payable Demand (FDR) with the amount of interest, if any, outstanding
therein.
Debit: P&L Interest Paid on FDRs with the amount of interest if any payable on closure
of the account.
Credit: Sundry Creditors Account with the amount of TDS if any.
Credit: Fixed Deposit Account with the amount selected for renewal.
An officer should authorize the Deposit Repayment and Deposit Opening separately.
The renewed Deposit Receipt should be printed, authorised and delivered in the usual
manner.
Where partial amount is selected for renewal, for the balance amount appropriate
cash/transfer transaction should be put through.
If no amount is to be marked for renewal, the amount shown in the field "Amount to be
marked for renewal" should be made ZERO and other type of transactions as under
should be selected.
28
30.4 For crediting the net amount to the operative account of the party, the type of transaction
should be selected as "Transfer". The Account Number to which the credit is to be given
should be entered. The system raises a Transfer Transaction as under.

therein.
of the account.
Credit: The operative account of the party with the net amount payable to him.
Debit and credit vouchers for the transfer transaction should be prepared and authorised
in the usual manner.
The transaction should be authorised by an officer through "Deposit Authorisation"→

"Deposit Repayment (DR)" option.
Care should be taken at the time of entering the operative account number of the party
and also at the time authorizing the repayment transaction. Any mistake in noting the
account number may lead to wrongful payment of the deposit amount.
30.5 If cash payment is to be made, the type of transaction should be selected as "Cash".
"Token Number" should be entered in the relative field. The system raises a Cash
Transaction. The transaction would be as under.

therein.
of the account.
Net amount would be payable in cash to the party.
A single debit voucher should be prepared for payment of cash. The transaction should
be fully described in the voucher. The voucher should be authorised for payment and it
should be put through the cash payment transaction in the usual manner.

The cashier should pay cash to the party in the usual manner.
In case aggregate of such Cash Payments to the party during the financial year is
Rs.20,000 or more, the system warns and the payment cannot be made in Cash. In such
a case the payment should be made by credit to the account of the party or by issuing a
crossed Demand Draft/Pay Order.
29
30.6 If a Demand Draft or a Pay Order is to be issued for the net amount, the letters DD or
PO and the name of the payee should be entered in the relative fields. The system
raises the relative transaction as under.

therein.
of the account.
Credit: HO New Others (IBR-Demand Drafts) or Pay Orders Account with the net
amount payable to him.
The transaction should be authorised by an officer through "Deposit

Authorisation"→"Deposit Repayment (DR)" option. There is no need for separate
authorization for issuance of the DD/PO.
The Demand Draft/Pay Order should be printed and authorised in the usual manner and
handed over to the party against acknowledgement or dispatched to his address as the
case may be.
30.7 At the time of raising the transaction the system credits the TDS amount to Sundry
Creditors Account as indicated in the above paragraphs depending upon the TDS
parameters. The amount so held in Sundry Creditors Account should be reversed and
paid to the Government as per the guidelines issued in this regard.
31. Automatic Renewal
Where an applicant opts for Automatic Renewal of the deposit, a letter of request may
be obtained from him for such an option. He should be advised to indicate in his letter
the "Number of Times" the automatic renewal is required. After the account is opened,
the account number should be noted on the letter and it should be preserved with the
relative application form.
*****
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Part – B: Call Deposits
1. Introductory
1.1 Call Deposits are those deposits which are payable on demand.
1.2 Call Deposits are totally demand deposits in nature unlike Fixed Deposits, which are
term deposits.
1.3 The instructions laid down under Part-A “Fixed Deposits” of this chapter are applicable to
call deposits also with such modifications as may be necessary.
1.4 However, Call Deposits are to be classified as a separate head in the General Ledger
and a separate serial number is to be maintained for the series of deposits accepted
under the head.
1.5 Usually Contractors who have to pay earnest money to Government Departments
approach Banks to issue Call Deposits Receipts. In such cases, the Call Deposits
Receipt is to be issued in the following form.
“……………………………………(Govt. Department) A/c XYZ (Name of the Depositor)”
2. Interest
No interest is payable on Call Deposits as they are similar to Current Accounts as per
the norms of the Reserve Bank of India. It should also be noted that our Call Deposits
are different from the ‘Deposits at Call’ which term Reserve Bank of India uses for inter-
Bank Call Deposits.
3. General Aspects
3.1 There is no separate stationery for Call Deposits. The common application forms,
deposit receipts etc., relating to Fixed Deposits should be made use of for Call Deposits
also.
The GL code 1060 should be used for Call Deposits.
3.2 While adapting the Fixed Deposits’ stationery for Call Deposits, the following points
should be noted.
i) The word ’Fixed’ should be neatly struck off and the word ‘CALL’ should be
written neatly above
ii) The rate of interest should be noted as NIL.
iii) At the space meant for due date, the words ‘AT CALL’ should be written.
3.3 The other procedure as stated in the chapter on ‘Guidelines on Deposits’, in Volume-2 of
the Manual of Instructions should be followed to the extent applicable, especially in the
following aspects.
31
i) Identification of the depositor as per KYC guidelines.
ii) Preparation of Vouchers and acceptance of remittances.
iii) Account entries.
iv) Preparation, Verification, Preservation etc., of Deposit Receipts.
3.5 At the time of repayment of a call deposit, branches should obtain the relative call
deposit receipt duly discharged by the depositors. Where the deposit amount exceeds
Rs.5000/- the discharge of depositor/s should be across a revenue stamp of adequate
value (at present Rs.1/-)
3.6 Deposit Loans shall not be allowed on call deposits.
*****
32
Part – C: Kalpataruvu Deposits
1. Introductory
1.1 This is a deposit scheme under ‘Reinvestment Plan’. Under this scheme, a lumpsum
amount is accepted as deposit for a fixed period and repaid with interest on maturity.
Interest on the deposit money is reinvested at quarterly rests thereby giving the
depositor the benefit of quarterly compounded interest.
1.2 Payment of quarterly compound interest under the scheme makes the scheme attractive
to depositors. It also gave the scheme an edge over fixed deposit schemes.
1.3 Due to adding of periodical interest to the principal under the scheme, there will be
automatic accretion to the deposit figure of the branch.
1.4 The scheme is best suited for those depositors who do not want to draw periodical
interest on their term deposits but can wait till maturity of the deposit.
1.5 In case of need, depositors can avail loan or overdraft facility on the outstanding balance
under their Kalpataruvu deposit account, i.e., principal plus accrued interest.
1.6 Detailed instructions with regard to different types of accounts, joint accounts, minors’
accounts, accounts in the names of joint Stock Companies, Partnership Firms, Clubs,
Associations etc., are laid down in the chapter on ‘Types of Constituents’ of the Manual
of Instructions. Those instructions should be followed in the case of Kalpataruvu
Deposits, so far as they are applicable.
1.7 The instructions contained in the following paragraphs should be regarded as

supplementary to those instructions given in the chapter on ‘Guidelines on Deposits’ in
Volume-2 of Manual of Instructions.
2. Who can make Kalpataruvu Deposits
Kalpataruvu deposits may be accepted from:
i) a single person,
ii) two or more persons with instructions:
a) payable jointly, or
b) payable Either or Survivor or Anyone or Survivor/s
iii) A minor represented by a Guardian,
iv) A major on behalf of a minor with the stipulation that the deposit is to be repaid to
the latter on attaining majority,
v) Any business/service organization,
33
vi) Religious/charitable Institutions,
vii) Statutory/government /Semi –Government bodies etc.
The depositor should be identified as per KYC norms.
3. Duration of the deposit
3.1 Kalpataruvu Deposits should be accepted in multiples of quarters only.
3.2 The minimum period is six months and the maximum is 120 months, However, branches
may accept deposits for periods exceeding 10 years in special cases as indicated in
Part-B of the chapter on ‘Guidelines on Deposits’ in Volume-2 of the Manual of
Instructions.
4. Amount of Deposit
4.1 The minimum deposit amount under the scheme is Rs.100. Any amount beyond
Rs.100/- must be in multiples of Rs. 50.
4.2 Branches should not accept odd amounts under the scheme.
5. Forms required for opening of the account
The guidelines given under para No: 6 of the chapter "Fixed Deposits" in this Volume of
the Manual of Instructions should be followed.
6. General aspects
6.1 The procedure explained in respect of the following aspects in the chapter on "Fixed
Deposit in this Volume of the Manual of Instructions should be followed for kalpataruvu
deposits also.
i) Permanent Account Number (PAN) or Form 60 or 61 and Tax Deduction Account

Number (TAN)
ii) Terms and Conditions of the Deposit Scheme.
iii) Customer Acceptance Policy (CAP)
iv) Customer Identification Procedure (CIP)
v) Verification of Forms
vi) Risk Categorization
vii) Customer Due Diligence (CDD)
viii) Permission to open the account
iX) Voucher for accepting the deposit account
x) Acceptance of Cash for the deposit account
xi) Opening of the deposit account through cash transaction
xii) Opening of the deposit account through transfer transaction.
xiii) Opening of multiple accounts with a single cheque
xiv) Printing/Preparing Deposit Receipt
xv) Closure of Deposits
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The GL Code: 1160 should be used for Kalpataruvu Deposits. The Account Type code is
KTD.
6.2 Kaplataruvu Deposit Accounts are transferable from one branch to another branch.
Branches should follow the procedure given in Part-A of the chapter on “ Guidelines on
Deposits” in Volume-2 of the Manual of Instructions.
6.3 Nomination facility is available in respect of Kalpataruvu Deposits. The guidelines on

‘Nomination’ given in Part-A of the chapter on ‘ Guidelines on Deposits’ in Volume-2 of
the Manual of Instructions should be followed for Kalpataruvu Deposits also.
6.4 Branches may, at the request of the depositors, issue certificate of interest credited
during any financial year on the standard proforma for IT purposes.
6.5 Quarterly jottings should be taken. This report gives the outstanding balances and they
should be checked and signed by Officer and Manager. These reports should be
preserved.
7. Interest calculation
7.1 The rates of interest on Kalpataruvu Deposit are subject to change as communicated by
Head Office from time to time.
7.2 Interest on each Kalpataruvu Deposit should be applied at the end of each half year
(with quarterly rests) i.e., as at the end of September and March every year.
For this purpose the procedure given under para No: 22 of the chapter on "Fixed
Deposits" should be followed. The Deposit A/C type should be given as KTD for
calculating of interest on Kalpataruvu deposits.
7.3 The Half Yearly Interest on Kalpataruvu Deposit gets debited to P&L interest paid on
Kalpataruvu Deposits and credited to individual deposit accounts.
*****
35
Part – D: Cash Certificates
1. Introductory
1.1 The Cash Certificate Scheme is a variant of Kalpataruvu Deposit Scheme
1.2 Under this scheme, odd sums are accepted for a fixed period to pay round sums on the
date of maturity. The interest on the deposit money is reinvested at quarterly rests
thereby giving the depositor quarterly compound interest.
1.3 The amount accepted at the time of issuing Cash Certificates is known as ‘Issue Price”
and the amount paid on maturity of the deposit is known as ‘Face Value’.
1.4 This scheme is best suitable for those depositors from lower and middle income group
since the small odd sums invested grow into large amounts over a period of time. The
depositors who are having definite idea regarding the quantum of their financial
requirements at a future date can save the required odd sum right now thereby planning
for their future needs. The scheme will have a great psychological appeal to the people
who like to draw large amounts in round figures like Rs. 10,000/- Rs 1,00,000/- etc., over
a period of time.
1.5 Depositors under the scheme can avail loan/overdraft facility on the outstanding
balance, i.e., principal plus interest accrued.
1.6 Detailed instructions with regard to different types of accounts, joint accounts, minors’
accounts, accounts in the names of joint stock companies, Partnership Firms, Clubs,
Associations etc., were laid down in the Chapter on “Types of Constituents” of the
Manual of Instructions. These instructions should be followed in the case of Cash
Certificate Accounts, in so far as they are applicable.
1.7 The instructions contained in the following paragraphs should be regarded as

supplementary to those instructions given in the chapters on “Guidelines on Deposits” in
Volume-2 of the Manual of Instructions.
2. Who can make a deposit under the scheme
2.1 All constituents who can make a Kalpataruvu Deposit can also invest under the Scheme.
2.2 However, branches are prohibited from issuing Cash Certificates in the Individual names
of the members of non-banking companies, firms etc., engaged in prize chit scheme.
The minimum period is 6 months and the maximum is 120 months in the multiples of
three months. However, branches may accept deposits for periods exceeding 10 years
in special cases as indicated in the chapter on ‘Guidelines on Deposits’ in Volume-2 of
the Manual of Instruction.
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4. Amount of deposit
4.1 Cash Certificates can be issued for the face value of Rs. 100/-,Rs. 1,000/- or multiples
thereof.
4.2 The issue price of cash certificates should be rounded off to the nearest 5 paise and
necessary adjustment for the same should be made in the final stage. The calculation is
as below:
Eg:-
Issue price of a cash certificate of Rs. 400/-for 51 months @ 6.5%

Issue price of cash certificate of Rs. 100/-for 51 months=76.03
Issue price of a Cash certificate of Rs. 400/-for 51 months=76.03x400/100=304.12
Issue price of a Cash certificate of Rs. 400/-for 51 months is rounded off to Rs. 304.10
In the above case rounding off should not be done in the I st stage i.e.Rs.76.03. It should
not be rounded off to Rs.76.05 thereby making the issue price as 76.05x4=Rs.304.20.
5. Forms required for opening of the account
The guidelines given under para No: 6 of the chapter "Fixed Deposits" in this Volume of
the Manual of Instructions should be followed. The applicants should be identified
properly as per KYC guidelines.
6. General Aspects
6.1 The General Aspects given under Part-C "Kalpataruvu Deposits" in this chapter are
applicable to Cash Certificates also.
The GL Code: 1200 should be used for Cash Certificates. The Account type code should
be CC.
6.2 Cash certificate Deposits accounts are transferable from one branch to another branch.
Branches should follow the guidelines given in this regard in Part-A of the chapter
"Guidelines on Deposits” in volume-2 of the Manual of Instructions.
6.3 Nomination facility is available in respect of cash certificates also. The guidelines given
on ‘Nomination facility’ in Part-A of the chapter on “Guidelines on Deposits” in Volume-2
of the Manual of Instructions should be followed for cash certificates also.
6.4 Quarterly jottings should be generated from the system. This report gives the
outstanding balances and they should be checked and signed by Officer and Manager.
These reports should be preserved.
6.5 Branches may, at the request of the depositors, issue certificates of interest credited
during any financial year on the standard Performa for IT purposes.
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7. Interest
7.1 The rates of interest on Cash Certificates are subject to change as communicated by
Head Office from time to time.
7.2 Interest on each Cash Certificates should be applied at the end of each half year (with
quarterly rests) i.e., as at the end of September and March every year.
For this purpose the procedure given under para No: 22 of the chapter on "Fixed
Deposits" should be followed. The Deposit A/C type should be given as CC for
calculating of interest on Cash Certificates.
7.3 The Half Yearly Interest on Cash Certificates gets debited to P&L interest paid on Cash
Certificates and credited to individual deposit accounts.
*****
38
Part – E : Bhagyalakshmi Deposit Scheme
1. Introductory
1.1 Bhagyalakshmi Deposit is a daily deposit scheme. The Scheme is formulated with a
view to inculcate saving habit among housewives, small businessmen, children and
other weaker sections of the society. The collection Agents, appointed by the Bank, will
go to the depositors every day and receive the deposits. Thus under the scheme,
depositors need not come to the bank everyday for depositing the amounts sparing their
valuable time.
1.2 Due to some administrative difficulties, the scheme has been restricted only to those
branches where it is already introduced. No new branch should accept deposits under
this scheme. Even at branches where the scheme is already in operation, appointment
of new agents is prohibited.
1.3 Guidelines given in the chapter on “Guidelines on Deposits” in Volume-2 of the Manual
of instructions shall be followed in the case of Bhagyalakshmi deposits also to the extent
relevant.
2. Who can open the account
Bhagyalakshmi Deposit Account can be opened by:
i) A person in his or her own name.
ii) More than one person in their joint names payable to either or survivor or anyone
or survivor(s) or payable jointly.
iii) a minor represented by guardian.
iv) a Sole proprietary concern, and
v) a partnership firm
3. Identification of the applicants
All the depositors opening Bhagyalakshmi Deposit Accounts shall be properly identified
as per KYC guidelines.
Any amount can be deposited by the Depositor subject to the condition that minimum
amount of such deposit shall be Rs.10/-
5. Duration of deposit and frequency of credits to the account
The minimum period for opening an account is two years and the maximum period is ten
years. There is no fixed frequency for depositing amounts into the account. The
39
depositor can deposit amounts at any time as he desires, when the collection agent calls
on him.
6. Rate of interest
6.1 As the banks representative is going to the door-step of the depositor for collection of
amounts instead of the latter coming to the Bank, and also commission is payable to the
collection agent, the rate of interest on Bhagyalakshmi Deposits would be less than the
normal rates of interest applicable to other Term Deposits.
The rate of interest now in force is under:
Period of deposit Rate of interest p.a.

Upto 2 years No interest
Above 2 years and up to 3 years 2.00 %
Above 3 years and up to 5 years 2.50 %
Above 5 years 3.00 %
7. Opening of Accounts
7.1 The depositor should personally call on the bank for opening the account. Standard
application form has to be used for opening Bhagyalakshmi Deposit Account. In case of
accounts opened in the name of a minor, the guardian has to mention the date of birth of
minor in the account opening form. Partnership letter shall be obtained for accounts
opened by Partnership Firms. Specimen signature of the depositor shall be obtained in
the account opening form itself. On completion of account opening form by the
depositor, the Manager/Sub-manager has to verify the form and sign at the appropriate
place in token of his approval for opening the account.
7.2 The Accounts should be opened in the system through BLD Module. The following
aspects should be kept in view while opening of the accounts.
i) Account type code should be "BLD". Sub Type code is same as in the case of
other types of deposits.
ii) The Interest Payment Frequency should be given as "H" indicating that the
interest is chargeable half-yearly.
iii) The GL Code: 1220 should be used for BLD Accounts.
8. Pass Books
8.1 The depositor will be given a Pass Book in which amount of deposits made by him will
be entered. The depositor should be advised to preserve his pass book safely and
present the same to the bank at least once in every month for making entries. If it is not
possible for the depositor to call on the bank for updating the passbook, he can send his
representative for this purpose. However, he should be advised that under no
circumstances, the passbook should be handed over to the collection agent.
40
8.2 If the pass book is lost by the depositor, a duplicate pass book can be issued. In such
cases, the procedure laid down in the chapter "Savings Bank Group of Accounts" of
Manual of Instructions regarding issue of duplicate pass book shall be followed.
9. Identity Card for the Agent for Collection of Deposits
9.1 Payments into the accounts are collected by the collection agents of the bank who will
call on the depositor daily. An identity card, duly authenticated by the bank containing a
passport size photograph of collection agent, will be issued to each collection agent in
token of his credentials.
9.2 Each collection agent would be given an identity card in the form printed for the purpose
to which a passport size photograph of the agent should be affixed. A small round rubber
stamp of the branch should be affixed at a corner of the photo as done in passports and
should bear the branch manager’s signature and date. The round stamp and signature is
to be affixed in such a way that a portion thereof appears on the photo and a portion on
the card. A specimen signature of the collection agent should be obtained on the card at
the appropriate place. The cost of photo should be borne by the bank to the debit of P&L
Miscellaneous Expenses account.
9.3 For each BLD Agent of the branch a Party Master should be created. The Party Code
allotted to the Agent should be used in all Vouchers/Entries/Stationery/Correspondence
relating to the agent.
While creating the Party Master for an Agent the information whether he is a Valid
Agent, the date from which the agent is operating, his Account Number with the branch
and securities obtained from the Agent etc., should be entered in the relative fields.
10. Bhagyalakshmi Deposit Cards
10.1 Bhagyalakshmi Deposit Card in the prescribed format shall be used by the collection
agent for recording payment received into the account during a week. One card is used
for each account for every week beginning from Monday.
10.2 The deposit card is a security item with printed number. Branches have to keep the
unused cards under joint safe custody.
10.3 The following procedure shall be followed in maintaining deposit cards:
i) All unused deposit cards shall be kept under joint safe custody in a cabinet. The
guidelines given under para No: 13 of Part-B of "Joint Custody of Cash and Other
Safe Contents" in the chapter on CASH should be followed in this regard.
ii) Not more than ten cards shall be issued at a time for each Bhagyalakshmi
Deposit Collection Agent (BLD Collection Agent) for the purpose of opening of
new accounts. Further issuance of cards will be considered only when the cards
already issued are utilized completely.
iii) For the existing accounts, deposit cards equal to the number of outstanding
accounts should be given every week to the BLD Collection Agent.
41
iv) Everyday BLD Collection Agent should furnish account for each deposit card he
has received.
v) A register has to be maintained for issuing deposit cards, preferably by keeping a

separate folio for each collection agent, in the following manner.
a) The folio for issuing deposit cards in respect of existing account holders
can have the following columns:
Serial Numbers of Week Signature of Cards Signature of

Deposits Cards Ending the BLD returned on the officer-in-
From To Agent charge
b) The folio for issuing deposit cards for opening new BLD account can have
following columns:
Date Serial Numbers of Signature of Number of Signature of

Deposit Cards BLD Agent Accounts Officer-in-
From To Opened charge
10.4 While issuing new cards to the existing accounts, the particulars on the card, such as
account number, week number, name of the depositor and balance as at the end of last
week, should be attested by the concerned officer.
10.5 Bhagyalskshmi Deposit Cards are printed in two parts, Original and Duplicate.
Whenever payments are received from a depositor, the collection agent shall enter the
particulars in the original and duplicate copies of the deposit cards. All entries in the
deposit cards for such payments shall be made in the presence of the depositor.
The original part of deposit card shall be given to the depositor duly signed by the
collection agent against each entry. The duplicate copy of the card with the depositor’s
signature confirming each entry shall remain in the custody of the collection agent.
10.6 All the payment entries in the deposit cards of a day should be entered by the collection
agent in the Bhagyalakshmi Deposit Daily Collection Statement specifically maintained
for this purpose, showing therein the name of the account holder, account number and
amount paid. On the top of this statement name and address of the collection agent,
amount of security deposit and date should be mentioned.
10.7 Each page of the statement will have a duplicate copy. The original and duplicate copy
of a page will have the same printed number. The original copy is perforated on the top.
The collection agent should prepare the statement in duplicate and add-up the daily
collections.
10.8 The collection agent shall remit the amount into the bank as soon as the bank opens
next day, producing the Bhagyalakshmi Deposit Daily Collection Statement, duly signing
on the original copy.
10.9 Collections made during Saturday and Sunday should be paid into the bank on the
following Monday. Collections made on any holiday shall be deposited in the bank on the
following working day without fail.
42
11. Verification of Deposit Cards
11.1 The officer-in-charge of BLD must insist on the BLD collection agent to produce all the
deposit cards for all the accounts everyday along with his daily statement of collections.
The officer should verify the payments by checking the signature of the depositors on
each card. He should make sure that the collections shown in the card are accounted
for in the daily statement. Total of daily statement should be verified. This verification is a
must, and should not be neglected under any circumstances. The officer should put his
signature on the duplicate copy of Bhagyalakshmi Deposit Daily Collection Statement in
token of verification of the statement.
11.2 The original copy should be detached from the register and duplicate copy should be
handed over to the collection agent along with the register, who will retain this as his
record of total day’s collection tendered by him to the bank. The total of such collections
should be added at the end of each month and commission should be paid to the agent
on the basis of the total amount.
11.3 On every Monday, the officer-in-charge of BLD should ensure that all deposit cards in
respect of all accounts are surrendered with the signatures of the depositors to the bank
irrespective of whether there are collections or not in an account during the relative
week. The officer should verify the totals in each deposit card. The BLD collection agent
should also submit weekly collection statement on every Monday. In this statement, total
amount collected from each depositor during the previous week should be mentioned
with his account number. Total of this weekly statement should tally with total amount
kept in Sundry Creditors for the week under the head ‘Daily Collections Bhagyalakshmi
Deposit’.
11.4 The weekly statement may be prepared with the following columns. By introducing this
statement, branches can make cross verification, with the BLD Register maintained in
the system, the total amount paid by each depositor during the month.
Account Name of the First Second Third Fourth Fifth Total

No. Depositor Week Week Week Week Week Amount
Total
12. Accounting Procedure
12.1 Each day’s collections made by BLD collection agents should be credited to Sundry
Creditors Account - ‘Bhagyalakshmi Deposit Daily Collections’. At the time of entry the
Agents Party Code number should be entered in the relative field.
The original copy of the daily collection statement should be enclosed to the credit
voucher of Sundry Creditors Account.
43
12.2 On every Monday, the individual totals in each Deposit Card should be added up. The
grand total so arrived for all deposit cards should tally with the total amount kept in the
Sundry Creditors Account - ‘Bhagyalakshmi Deposit Daily Collections’.
12.3 After the totals are thus tallied, the total amount kept in the Sundry Creditors account of
that particular agent shall be reversed to the credit of the respective accounts in one
lump sum and posting can be made into each account from the total amount appearing
on the relative deposit card.
12.4 The duplicate cards submitted by the collection agents will form the credit voucher in the
Bank’s records.
12.5 The cashier has to receive the amount remitted by BLD Agent, without giving the
account number or GL number and note down the Scroll Number on the voucher.
Then the option ‘BLD Daily Collection Received’ has to be invoked. The details like the
BLD Agent’s Code, date of collection, amount of collection, Scroll Number etc., have to
be entered. On confirming the above particulars, the system would credit the amount to
Sundry Creditors Account -‘Bhagyalakshmi Deposit Daily Collections’.
12.6 New accounts should be opened in the system using the option BLD Account Opening
by giving correct effective date and the BLD Agent code.
12.7 On every Monday, invoke the option, ‘BLD Individual A/c Credit Entry’. Give the BLD
Agent’s Code and the collection for the period. On confirming the correctness of the
entries Sundry Creditors Account - ‘Bhagyalakshmi Deposit Daily Collections’ would be
debited and the individual BLD accounts would be credited. If more than one Agent is
there, the second Agent’s BLD accounts can similarly be posted basing on the Agent's
Code Number.
12.8 The BLD new accounts are to be authorized through Term Deposit account passing
option. Daily collection credit, individual accounts credits and the closure are to be
authorized through the relevant options available under ‘BLD A/c Passing Operations’
option.
13. Calculation and posting of Half Yearly interest
During the 31st March and 30th September every year interest should be calculated and
posted to Interest Payable Time Account.
Interest should be calculated through "BLD Interest Accrual Calculation" option and
Interest should be posted through "BLD Interest Accrued Positing" option.
However, for June and December quarters, interest should be calculated through "BLD
Interest Accrual Calculation" option. Report for the same should be generated and
interest provision should be maintained.
For the purpose the following entry should be passed as at the end of the Quarter by
preparing required vouchers and authorizing the same.
44
Debit: P&L – Interest paid on BLD Accounts
Credit: Sundry Creditors Account- Provisions
The entry should be made in the system through Normal entry Option and authorised.
The amount of provision should be reversed from Sundry Creditors Account at the
beginning of the following Quarter.
14. Closure of Accounts
An account can be closed through the "BLD Repayment Entry" option on normal closure,
premature closure and closure for transfer of the amount to term deposit account.
For premature cancellation and for transfer of the funds to Term Deposit Account the
code to be given is 1 and in other cases the code is 3.
The system automatically computes the amount of interest payable and also the
commission recovery, if any.
For closing appropriate vouchers should be prepared and authrorised.
15. Deposit Loans
Loans up to 75% of the deposit amount subject to a minimum of Rs.100/- can be

granted. When a loan is allowed, pass book, duly discharged over a revenue stamp on
the last page should be obtained from the depositor with other necessary forms. Lien
should be marked in the system, as in the case of any other Term Deposit.
16. Discharge and Payments
Procedure laid down in respect of “Recurring Deposits" in this chapter, should be

followed for discharge and payment of BLD accounts.
17. Converting the Balance in BLD account into Fixed or Reinvestment Deposit
17.1 The Bhagyalakshmi Depositors are allowed to convert the balances in their
Bhagyalakshmi Deposit Account into Fixed or Reinvestment Deposits, before maturity
without penalty provided the deposit remains with the bank in the Fixed or Reinvestment
Deposit Scheme for period longer than the remaining period of the BLD account.
17.2 However, when the depositors avail this benefit, they should close the existing BLD
account and transfer the entire balance to fixed or reinvestment deposit, as the case
may be.
17.3 If the depositor request for cancellation of deposit after conversion, instructions laid
down in this regard in Part-B "Guidelines on Term Deposits" in the chapter "Guidelines
on Deposits" in Volume-2 of the Manual of instructions should be followed.
45
18. Cancellation of Deposits before Due Date
18.1 The depositor is entitled to claim refund of the deposit amount, at any time before
maturity, by giving seven days notice. In case the premature cancellation of an account
is sought before two years from the date of opening of the account no interest shall be
paid on the deposit account. The commission if any paid to the BLD Agent in respect of
the account shall be recovered.
18.2 If the deposit is cancelled after two years from the date of opening the account, the
instructions contained about premature cancellation of term deposits in Part-B
"Guidelines on Term Deposits" in the chapter on "Guidelines on Deposits" in Volume-2
of the Manual of Instructions should be followed.
19. Balancing
Report of Bhagyalakshmi Deposit jottings should be printed from the system on the last
Monday of every month. It should be verified and signed by the Officer and Manager.
20. Transfer of Accounts
Bhagyalakshmi deposits are neither transferable from one person to another person nor
from one branch to another branch.
21. Commission to the collection Agent
21.1 Commission is paid to the collection agent on the first Monday of every month on the
amount collected by him in the preceding month. He is eligible to receive commission at
the rate fixed by the Head Office from time to time. At present following is the
commission payable to BLD Agents in terms of the Award of the Court.
i) Rs.750/- as fall back wages which is linked to mobilization of a minimum deposit

of Rs.7,500/- per month.
ii) In addition to the fall back wages, the agent should also be paid an incentive
remuneration @ 2% for mobilization of over and above Rs.7,500/-per month.
iii) The agent should also be paid conveyance allowance of Rs.50/-per month for
deposits of less than Rs.10,000/- and Rs.100/- per month for mobilization of
deposits of Rs.10,000/- and above per month.
For the above purpose the option "BLD Commission Calculation" option should be
invoked. The first date and the last date of the previous month should be entered in the
relative fields. Thereafter "BLD Commission Posting" option should be invoked to post
the amount of commission to the account of the BLD Agent by debit to P&L Account.
Vouchers should be prepared and authorised in the usual manner for the transaction.
If the commission is paid as explained above on all the amounts collected during a
month, in certain cases it is possible that the amount of commission paid would be out of
proportion to the advantage derived by the bank from the deposit in case heavy
collections are made in the closing months of the deposits and commission is paid on
46
them. These heavy amounts would obviously stay with the bank only for few months,
where as commission is paid at the prescribed rate per month.
21.2 So commission paid should have a relation to the amounts collected during the entire
period of the deposit .For this, the following procedure should be adopted whenever an
account is closed.
i) If any account is closed before two years, commission paid to the agent on the
amount collected in the account should be recovered in full. In case where
balances in BLD accounts are transferred on monthly basis or periodically, it
tantamounts to closure of the account, even though it is not done so. Hence, in
all such cases commission paid to BLD agents should be recovered in full if
transfers are effected to loan/deposit accounts at intervals of less than 24
months.
ii) In other cases, the following method should be followed.
a) Commission paid during the last 12 months for the account should be
taken into consideration month-wise.
Example: For accounts opened for 3 years period, the commission paid
during the 3rd year should be considered.
b) From (a) above, the month in which the agent received minimum
commission for the account should be noted.
c) The average commission received by the agent in the account for the
period of deposit excluding the last 12 months to be worked out.
Example: For accounts opened for 3 years period, average commission
received by him in the first 2 years period is to be noted. This average
can be arrived by driving the total commission paid for the account in the
first two years, by 24.
Similarly for a five year deposit, average commission paid for the first 48
months shall be calculated.
d) Minimum commission as noted in (b) and average commission arrived in

(c) shall be compared to find out whichever is lower. Then commission for
the last twelve months should be paid at that lower rate by making an
adjustment in the commission payable, if necessary.
22. Balance confirmations
22.1 Balance confirmation letters should be sent to all the account holders under this scheme
every quarter by post. This work should not be allowed to be handled by the BLD
collection agents. Balance confirmations should be obtained from each account holder,
duly signed by him. The signature on the confirmation letters should be verified with the
specimen signature on record.
Option is provided in the system to generate and print the Balance Confirmation letters.
The option should be invoked and the letter should be printed.
47
The acknowledgements received from the depositors have to be entered using the
option, Balance Confirmation Received.
22.2 Branches should not utilize the services of BLD collection agents for any purpose except
for collection of Bhagyalakshmi Deposits. The collection agents should not be given the
duties of clerks/operator, sub-staff etc.,
22.3 Collection agents should not be permitted to access any records of the branch.
23. Precautions
23.1 Bhagyalakshmi Deposit scheme is susceptible to frauds more easily. One of the reasons
is, the collection agents appointed by our bank are not our regular employees. They
work independently for the Bank on commission basis. Branches can exercise very little
control over them, though they are instrumental for the success of the Deposit scheme.
23.2 In view of the above, it is necessary for the branches to take additional precautions to
prevent frauds and loss of funds. Any negligence in this regard would damage bank’s
image and good will and also cause inconvenience to number of depositors under this
scheme, most of them being from weaker sections and middle class.
23.3 Branches should observe the following points.
i) The depositor should necessarily be present at the time of opening and closure
of the account and also when he borrows money against BLD accounts.
ii) Depositors shall be advised that pass book should not be handed over to the
BLD collection agents for making entries. They should personally call on the
branch or send their representative for making entries in the pass book and the
balance should be duly certified by one of the bank’s officials at the branch at
regular monthly intervals.
The depositors should be specially informed that the bank would not be held
responsible for the accuracy of the entries made in the pass book until and
unless certified by the branch officials. BLD collection agent should not make
entries or initials in the pass book.
iii) Collection agents should not be given free access to the deposit cards or any
other stationery relating to the deposit scheme.
iv) Pass book discharged should be retained in the custody of the branch when
loans are sanctioned against the Bhagyalakshmi deposits. Lien should be noted.
All applications should be preserved safely under the custody of the officer.
v) Closure of accounts shall be authenticated by the manager as far as possible.
vi) Branch should keep a close and constant watch over the activities of collection
agents and ever remain vigilant. Any perceptible change in the style of living
48
should be enquired with a view to satisfy them selves that the change is not by
any misappropriation of deposits.
23.4 If the manager feels that further collections in the Bhagyalakshmi deposit accounts are
not desirable, they should stop collections by Bhagyalakshmi deposit collection agents
with immediate effect. But before stopping, they should follow the under mentioned
procedure.
i) Take back all the BLD unused stationery from the collection agents and also his
identity card
ii) Send one officer with BLD collection agent along with balance confirmation
letters to the individual account holders.
iii) The officer should inform the depositor that the scheme is discontinued with
immediate effect.
iv) The officer should advise the depositor not to pay any amount to BLD collection
agent from the day on which the visit is made.
v) Take balance confirmation from the party and keep it along with account opening
form.
vi) Whenever an account is closed, the relative application should be removed and
kept in a separate file maintained for the purpose of ‘BLD accounts closed
applications’. This should be under lock and key of the concerned Officer. After
all the accounts are closed, they should be kept in old records, the application
should not be attached to the relative debit voucher, as it gives scope for removal
of application forms from vouchers.
23.5 In case, branches detect any fraud or irregularity committed by collection agents, the
following precautions should be taken.
i) The identity card given to collection agent should be withdrawn forthwith.
ii) A notice should be sent to all account holders by post to the effect that the agent
is discharged from the agency and that no payment should be made to him.
Postal expenses can be debited to the collection agent’s account.
iii) Balance certificates should be sent to all account holders and confirmations
obtained from each one of them.
iv) Balance in the accounts should be tallied with General Ledger Balances.
v) The security deposit shall not be refunded without prior permission from
higher authorities.
vi) The irregularities committed by the BLD collection agents should be reported to
the higher authorities immediately to obtain permission for termination of the BLD
collection agent and for necessary guidance.
49
24. Terms and conditions for appointment of collection Agents
24.1 At present there is no provision for appointment of new BLD collection agents. The
following paragraphs are given only by way of information to the branches regarding how
and under what terms and conditions the existing BLD collection agents were appointed.
24.2 Eligibility:
Persons with good character, integrity and with capacity to popularize the scheme are
eligible for appointment. Generally school teachers, insurance agents, retired members
of staff etc., are suitable.
24.3 The following guidelines should be observed.
i) the applicant should be a major.
ii) normally he should not be a student. But in exceptional cases a student may be
accepted if he is well introduced and his references are very good.
iii) minimum qualifications required for appointment is matriculation or its equivalent
but in the case of exceptionally good candidates, minimum educational
qualification can be reduced to a pass in 7th class.
iv) Enquiry should be made with atleast two references citied in the application.
v) Two guarantors should be furnished.
vi) Bank employees, either part time or whole time, are not eligible for appointment.
24.4 Procedure for appointment:
i) The application in the prescribed form should be taken and forwarded to Zonal
Office.
ii) On receiving permission, the approved collection agent has to execute an

agreement in the proforma given as Annexure No: I which contains terms and
conditions of the Agency.
iii) The agent should furnish Letter of Guarantee from two respectable persons on
non-judicial stamp paper of appropriate value as per the proforma given as
Annexure No: II
24.5 Security Deposit:
i) Initially, a security deposit of Rs. 500/- may be taken from each agent. In
exceptional cases, where the branch manager is satisfied about the party’s
integrity, means and dependability. The security deposit may be permitted to be
made partly or wholly in cash and/or such other security acceptable to the bank
with the express permission in this regard from the Head Office. The amount of
security deposit may be enhanced up to Rs. 2,000/- in multiples 0f Rs.500/- as
follows.
50
For daily collections up to Rs. 1,000/- Rs. 500/-
For daily collections Rs. 1,000/- to Rs. 2,500/- Rs. 1,000/-
For daily collections Rs. 2,500/- to Rs. 5,000/- Rs. 1,500/-
For daily collections Rs. 5,000/- and above Rs. 2,000/-
ii) When collection agent is not in a position to give cash security or any other
security acceptable to the bank, alternative security in the form of Fidelity
guarantee to the extent required may be accepted.
iii) The amount of security deposit should be kept in a Fixed/Kalpataruvu Deposit

with the Bank, so that if may earn interest. (the deposit receipt duly discharged
by the collection agent over a revenue stamp of required value should be taken
along with a lien letter and Take Delivery Letter suitably amended).
iv) The security deposit should be held till three months after the termination or
renunciation of agency or so long as any claim by any depositor or any dispute is
pending between the agent and the bank.
*****
51
Annexure No: I
(Para No: Part-E : 24.4 (ii))
AGREEMENT
This indenture of Agreement executed between _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

S/o _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ aged _ _ _ _ _ _ years, residing at _ _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ hereinafter called the Agent, and ANDHRA BANK, a
Government of India undertaking with its Head Office at Hyderabad, carrying on
business with a branch at _ _ _ _ _ _ _ _ _ _ amongst other places hereinafter called
Principal and represented by its over of Attorney Holder, the Manager/ Agent, Sri _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ S/o _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
residing at _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ hereinafter called the Principal.
WHEREAS by letter No _ _ _ _ _ _ _ _ _ _ _ dated _ _ _ _ _ _ _ _ the Principal has

appointed me as its Agent for collection under the Bhagyalakshmi Deposit Scheme on
commission and whereas one of the terms of agency is that the Agent should execute
an agreement for due, proper and faithful discharge of his duties and whereas it is
necessary that such terms should be reduced to writing; now therefore this agreement
witnesseth as follows:
1) That the Agent shall collect the daily deposits form the customers of the Principal
regularly in terms of the rules under the Bhagyalakshmi Deposit Scheme.
2) The Agent shall render a true and correct account of the daily deposits collected
by him to the Principal in the prescribed manner.
3) Bhagyalakshmi Deposit collections made by the Agents everyday shall be

accounted for, and deposited in cash by him with the Principal on the next
working day at the commencement of the office hours along with a statement of
account and the duplicate deposit cards duly signed by the depositors, shall be
submitted to the Principal for verification.
4) The Agent shall endeavor to promote and enhance the collections under the
Bhagyalakshmi Deposit Scheme of the Principal and shall observe honesty,
courtesy, forbearance and good temper in his dealings with the customers and
the public in the discharge of his duties.
5) The Agent shall deposit with the Principal a sum of Rs. 500/- as security deposit
for the faithful discharge of his duties and the Agent hereby agrees and binds
himself to furnish such other or more security as may be required by the principal
from time to time. The Principal shall hold the said security deposit till after 3
months after the termination of the Agent’s services or so long as any claim of
any depositor or dispute is pending between the Agent and the principal. If, at
any time, any liability is incurred by the Principal in respect of any loss or damage
or other injury sustained, incurred or occasioned by the dishonesty or any act of
commission or omission or negligence of the agent in the discharge of his duties,
the Principal shall be entitled in his absolute discretion to adjust and appropriate
a portion or the full amount of security deposit and/or such other moneys also
standing to the credit of the Agent without any reference to the Agent in this
behalf. The Principal’s decision in such matters over this security amount shall be
52
absolute and final and shall not be questioned by the Agent or by his
representatives. The Agent shall be entitled to the refund of the balance, if any,
any after proper acquittance by the Principal.
6) The Agent shall be entitled to payment of commission as per rules in force from
time to time on the total collection made by the Agent during the period of a
calendar month provided that the Agent undertakes to refund in full any
commission received by him/paid to him on any account which is closed within 6
months form the date of opening of the account. The Agent should discharge his
duties faithfully, honestly and diligently and without creating any complaint from
customers and carry out the orders and instructions of the Manager/Agent or any
other person that may be in charge of the Principal’s above said _ _ _ _ _
Branch.
7) The Agent shall be entitled to terminate the Agency by giving one month’s notice
in writing. The Agent also agrees to keep the principal informed in writing of his
temporary inability, if any, at any time and making necessary alternate
arrangements for collection of deposits by his delegate at his risk and
responsibility on the strict understanding that his delegate shall comply and fulfill
all the terms of Agency. The Agent further agrees that he shall be solely
responsible for all acts of commission and omission, if any, of his aforesaid
delegate, though appointed with prior permission of the Principal. In the event of
his failure to appoint a delegate to the satisfaction of the Principal, the Principal
shall be at liberty, to make alternative arrangements for collection of
Bhagyalakshmi deposits in respect of the cards dealt with by him during the
period of his inability to collect the same without reference to him and the deposit
cards would be handed over to the person so appointed by the principal.
8) The Agent agrees that his agency may be terminated by the Principal at any time
without notice to him and for any reason whatsoever in the sole discretion of the
Principal or his Power of Attorney holders from time to time.
9) The Agent shall not collect or receive any other money from any customer of the
Principal except Bhagyalakshmi deposit. He shall also not enter service or
employment of any other Bank, firm or person etc., for such collections on behalf
of any other bank or organization, which is having a similar scheme, during the
subsistence of his agreement. If the Agent is guilty of such breach of the
agreement, the Principal at his sole discretion may terminate his agency without
any reference to the agent.
10) The Agent agrees to observe complete and strict secrecy about all the
transactions and dealings of and with the principal and he agrees that he is
always bound to such secrecy and that he shall not either during his agency or
even after its termination disclose or divulge to any person, firm or company any
of the principal’s transactions or any other information relating to the principal or
its customers, except when compelled to do so by the process of law. He further
agrees that for breach of the said duty, he shall render himself liable to summary
termination of agency or such other action of the principal may in his sole
discretion decide, besides rendering himself liable for such damages or loss as
the Principal may sustain by reason of such breach of this covenant.
53
11) The agent further agrees that as and when he ceases to be the Agent, either by
termination by the Principal or renunciation made by him or under any other
circumstances the Principal is entitled to get confirmation of the balances in the
Bhagyalakshmi deposit accounts to which he was making collections at his cost,
debiting necessary expenses to his security deposit. The Principal shall be solely
entitled to determine the mode and manner of obtaining such confirmation.
In witness whereof the Agent and the Principal signed and executed this
document on this the _ _ _ _ _ _ _ _ day of _ _ _ _ _ _ 20 _ _ at _ _ _ _ _ _ _ _.
WITNESSES:
1. 1. PRINCIPAL
2.
2. AGENT
3.
54
ANNEXURE No: II
(Para No: Part-E : 24.4 (ii))
Andhra Bank
Head Office. Hyderabad
LETTER OF GUARANTEE
(Non- Judicial Stamp of adequate Value)
The Manager,
Andhra Bank,
_______________
Dear Sir,
In consideration of your bank having appointed Sri _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

as one of the Agents for the collection of monies under the Bhagyalakshmi Deposit
Scheme, and for the due performance of the duties by the said agent in terms of the
agreement dated _ _ _ _ _ _ _ _ _ _ _ entered into between the Bank and the said
Agent, it is agreed that I/We shall furnish our guarantee therefore.
Now therefore this guarantee is executed by me/us and I/We jointly and severally, agree
with you as follows:
1) I/We hereby guarantee to pay to you, on demand any monies that are collected
by the said Agent from the depositors and not accounted for to the bank together
with interest, any costs and charges and expenses, which may at any time
become due and payable by the Bank to the depositors.
2) I/We hereby consent to your making any variations that you may think fit in terms
of your contract with the said agent, promising to give time, or not to sue him or
not enforcing any security you may be holding or taking additional security. This
guarantee shall not be avoided or released or affected by your taking any such
action.
3) So long as any money remains owing under this guarantee, you shall have a lien
on any monies standing to the credit of myself /ourselves or any of us with you
and on any such securities.
4) I/We agree that any demand by the bank shall be conclusive proof that such
amount demanded, shall be deemed to be due and owing by the said agent to
the bank and shall not be disputed or questioned by me/us.
5) I/We agree that should the said agent become bankrupt, without any right on
my/our part to stand in your place in respect of or to claim the benefit of any
composition or payments or security held by you, until you shall have received
the full amount of your claims against the said agent, this guarantee shall apply
to and to secure any ultimate balance which shall remain due to you. I/We nor
any of us will prove in case of bankruptcy of the Agent, to your prejudice or take
55
any security and any such security shall stand as security for you and shall be
forthwith deposited with you.
6) You shall be at liberty to demand of us in the first instance of any monies due by
the said agent and it shall not be necessary for you to first sue the Agent or
me/us jointly or separately and you may do so at your discretion and I/We shall
be bound to pay the monies demanded accordingly.
7) The guarantee shall bind my/our representatives, heirs, executors and

administrators and shall be enforceable by you and your assigns.
8) The condition of this guarantee is such that if the said Agent _ _ _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ shall from time to time and at all times
hereafter, so long as he holds the office of the Agent of Bhagyalakshmi Deposit
Scheme, shall fully and faithfully perform his duties, and regularly account for and
pay the sums to the bank as in every other respect shall duly discharge all
obligations in the capacity of the said Agent, then this guarantee shall stand
cancelled and otherwise until then the same shall remain in full force.
Yours faithfully,
Place:_____________________ 1.___________________________
Date:______________________ 2.___________________________
Address:
1. Name: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
S/o _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Occupation: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
2. Name: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
S/o _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Occupation: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
*****
56
Part – F : Recurring Deposits
1. Introductory
1.1 In the scheme of Recurring Deposits, a depositor deposits a fixed sum each month, for
an agreed number of months. As the payment of instalments recur every month, the
scheme is called Recurring Deposit Scheme. On paying all the agreed number of
instalments the depositor is paid on the due date a specified amount which represents
the total amount of instalments plus interest.
1.2 Recurring deposit scheme, is aimed at mobilizing the savings of salaried persons and
wage earners. It helps the depositors to plan their savings so as to meet future
contingencies such as marriage, education, retirement etc. Similarly firms, companies
and other associations and even small businessmen can use this scheme for savings
while planning their future requirements. By canvassing these accounts, branches will
get the benefit of increase in their deposits automatically every month.
1.3 Instructions laid down in the chapters on “Types of Constituents” should be observed in
respect of different type of applicants. The guidelines contained in the chapter
“Guidelines on Deposits” in volume-2 of the Manual of Instructions should be followed in
for Recurring Deposits to the extent relevant in addition to the instructions given in the
following paragraphs.
2. Who can open the account
2.1 Recurring Deposit account can be opened by:
i) a person in his or her own name,
ii) more than one person in their joint names, payable to either or survivor or
anyone of them or survivor or survivors,
iii) two or more persons payable to all of them jointly,
iv) a guardian on behalf of a minor,
v) a minor who is of 10 years of age or more, on production of proof of date of birth,
vi) a major on behalf of a minor with the stipulation that the deposit is to be repaid to
the latter on attaining majority and
vii) Clubs, sole proprietary concerns, firms, companies and associations, educational
institutions and such other bodies provided they are registered and bank is
satisfied that the account is opened for genuine savings purpose.
2.2 More than one account can be opened for the same applicant(s).
3. Identification of the applicants and authorised signatories
KYC norms should be applied for identification of applicants and authorised signatories.
57
Recurring Deposit is accepted in monthly instalments with a minimum sum of Rs.5 per
month and in multiples thereof.
Minimum period of the deposit is six months. The period of deposit should be in
multiples of 3 months. Maximum period of a deposit is 120 months. However, branches
may accept deposits for periods exceeding 10 years in special cases as indicated in
Part-B "Guidelines on Term Deposits" of the chapter “Guidelines on Deposits” in
Volume-2 of the Manual of Instructions.
6. Application and other Forms
6.1 The guidelines given under para No: 6 of Part-A "Fixed Deposits" in this chapter should
be followed for obtaining application and other forms.
The guidelines regarding Permanent Account Number (PAN) and Tax Deduction
Account Number (TAN), Terms and conditions of the Deposit Scheme, Customer
Acceptance Policy (CAP), Customer Identification Procedure (CIP), Verification of
Forms, Risk Categorization, Customer Due Diligence (CDD) and Permission to Open the
Account as given in Part-A "Fixed Deposits" in this chapter should be followed.
6.2 The GL Code: 1210 should be used for Recurring Deposits. Account Type code is "RD".
Te sub-codes to be used are same as in the case other types of deposits.
7. Voucher for accepting Deposit Amount
7.1 The amount of instalment and period of deposit are to be determined at the time of
accepting the application form itself. No changes in this regard are permissible after
opening of the deposit account.
7.2 After completion of Customer Due Diligence and after permission is given for opening of
the account the deposit account should be opened in the system.
7.3 The operator/officer should verify the Customer Due diligence Form to ensure that it
contains permission of the Branch Head/Manager/Senior Officer for opening of the
deposit account.
He should advise the applicant to prepare a Pay-in-Slip (in form with Comp No: 20102)
for the Recurring Deposit Account for payment of the first instalment into the account.
The operator/officer should write the words "New Account" on the Pay-in-Slip.
7.4 An account can be opened through a cash transaction or through a transfer transaction.
58
7.5 If the deposit is to be made through a cash transaction, the operator/officer should retain
the word "Cash" and strike off the word "Transfer" at the right hand top corner of the
Pay-in-Slip.
He should retain with him the Application Form and the enclosed documents. He should
obtain the signature of the applicant on the Pay-in-Slip at its right hand bottom corner.
He should handover the Pay-in-Slip to the applicant with an advice to note the cash
denominations on it and to deposit the cash at the cash counter.
8. Acceptance of Cash for the Deposit Account
8.1 The applicant should tender the Pay-in-Slip together with the cash to the operator at the
cash counter / single window counter.
8.2 The operator should receive the Pay-in-Slip and the cash from the applicant and attend
to the transaction in accordance with the procedural guidelines given under para No: 7 of
Part-A of the Chapter on Cash of the Manual of Instructions. The following are
exceptions to the general procedure, which the operator should observe.
i) The operator should not enter the GL Number and the Deposit Account Number
in the system for the cash transaction entry. These shall be entered after the
deposit account is opened in the system.
ii) The operator should note the Scroll Number of the transaction at the right hand
top corner of the Pay-in-Slip.
8.3 The operator should sign on the Pay-in-Slip and send it to an operator/officer for doing
the needful.
9. Opening of the Deposit Account – through a Cash Transaction
9.1 On receiving the Cash Received Pay-in-Slip, an operator or an officer should open the
Recurring Deposit Account in the system through the Term Deposit Opening option.
Appropriate Account Type (eg., RD for Recurring Deposits) and Sub Type (like 01 for
General Public, 02 for Staff and 22 for Senior Citizens) should be entered in the screen.
The system generates Recurring Deposit Account Number automatically.
Account should be linked to the Party Code(s) of the applicant(s). In case the
applicant(s) is/are existing customer(s) of the branch, the account should be linked to
his/her/their existing Party Code. If the applicant(s) is/are not the existing customer(s),
new Party Master(s) should be created for him/her/them and linked to the account.
All other relevant particulars such as Instalment amount, instalment payable date, Joint
Deposit, Repayable to, Nomination, Deposit Repayment instructions etc., should be
entered in the relative fields in the Deposit Account Opening Screen.
The account opened in the system should be saved. The Account Number should be
noted in the Pay-in-Slip, Application Form and other related Forms.
59
9.2 RD Instalment Receipt Entry option should be invoked. The amount of cash received as
indicated in the relative Pay-in-Slip should be entered as the "First Instalment" for the
New Account already opened in the relative field of the screen. Then Cash Scroll
Number appearing on the Pay-in-Slip should be entered in the relative field.
The Deposit Entry should be saved. On saving the deposit entry, the system raises a
Cash Batch for the Deposit by taking the amount from the Cash Scroll Number
generated at the time of receiving the cash.
Where an operator attends to the activity of opening of the deposit account an officer
should authorize the Deposit Opening entry. Where an officer attends to the activity of
opening of the deposit account another officer should authorize the Deposit Opening
entry.
The officer should authorize the RD Instalment through "RD Instalment Authorisation"
option and authorise the RD Account through "RD Authorisation" option in the Deposit
Authorisation Menu.
There is no need to authorize the instalment received entry through Normal Transaction
entry option.
The operator or the officer who attends to the activity of opening of the account and the
officer who authorises the instalment and opening of the account should sign on the
Pay-in-Slip in token of entering and passing the same and also in the Customer Due
Diligence form at the place provided for signatures.
10. Opening of the Deposit Account – through a Transfer Transaction
10.1 An account would be required to be opened through a transfer transaction in the

following circumstances.
i) Where the applicant maintains an operative account with the branch and desires
to transfer funds from the operative account to the term deposit account.
ii) Where the applicant maintaining account with another branch/bank and desires
to transfer funds from such branch/bank for to the Term Deposit Account.
iii) On transfer of a Term Deposit Account from another branch.
Where cheques, Demand Drafts etc, are tendered for placing the amount in Term
Deposits the guidelines given in para no: 16 of Part-B "Guidelines on Term Deposits" of
the chapter "Guidelines on Deposits" involume-2 of the Manual of Instructions should be
observed.
10.2 Procedure to be observed for opening of term deposit account in the above
circumstances is separately explained in the following paragraphs.
10.3 Where the applicant maintains an operative account with the branch:-
60
i) A cheque draw by the applicant on his account with the branch payable to the
bank as "Yourselves" for the deposit amount should be obtained.
The cheque should be verified in the manner explained under para No: 33.4 of
the chapter on "Current Deposit Accounts" of this volume of the Manual of
Instructions.
In case of Savings Bank accounts where the applicant does not have cheque
book facility, a debit voucher should be prepared for transfer of the amount from
his account to the Term Deposit Account. Signature of the applicant should be
obtained on the right hand bottom corner of the voucher.
A Pay-in-Slip should be prepared with full details as stated above. The cheque or
the debit voucher and the Pay-in-Slip will form a set of transfer vouchers.
transfer vouchers.
ii) The Recurring Deposit Account should be opened in the system as stated in the
above para No: 9.1.
RD Instalment Receipt Entry option should be invoked. The amount of first

instalment for New Account already opened should be entered in the relative field
of the screen. The operative account number and the cheque number should be
entered in the relative fields.
There is no need to debit the operative account separately.
iii) The RD Instalment Entry should be saved. On saving the entry, the system
raises a Transfer Batch for the instalment by taking the amount from the relative
account.
iv) The transfer batch number should be noted on the Cheque/Debit Voucher and
also on the Pay-in-Slip.
v) Where an operator attends to the activity of opening of the deposit account an

Deposit Opening entry.
The officer should authorize the RD Instalment through "RD Instalment

Authorisation" option and authorise the RD Account through "RD Authorisation"
option in the Deposit Authorisation Menu.
vi) The operator or the officer who attends to the activity of opening of the account
cheque/debit voucher and also on the credit voucher respectively in token of
entering and passing the same and also on the Customer Due Diligence Form at
the place provided for the signatures.
61
10.4 Where the applicant maintains account with another branch/bank and desires to transfer
funds from such branch/bank for credit to the Recurring Deposit Account:-
i) A cheque draw by the applicant on his account with the other branch / bank
payable to "Andhra Bank, Branch Name A/c Applicants' Name" for the
deposit amount should be obtained.
The cheque should be verified in the usual manner as explained for collection of
local / outstation cheques in the relative chapters of the Manual of Instructions.
ii) In case the cheque is drawn on any branch of our bank having net-work
connectivity with the branch, the cheque may be routed through Any Branch
Banking facility for payment.
In case the cheque is a Multi City Cheque of a branch of our bank, it should be
collected through Multi City Cheque facility.
The amount of the cheque should first be collected for credit of Sundry Creditors
Account. For crediting the amount to the Sundry Creditors Account a credit
voucher should be prepared with full narration of the transaction and details of
the cheque. For putting through the transaction the procedure stipulated for Any
Branch Bank transactions should be observed.
Thereafter a Debit Voucher should be prepared for debit to Sundry Creditors

Account and a Credit Voucher should be prepared for credit to the Recurring
Deposit Account for the deposit amount held in Sundry Creditors Account with
full narration of the transaction in the vouchers. The vouchers form a set of
Transfer Transaction.
transfer vouchers.
For opening of the deposit account the procedure given in the above para Nos:
10.3 (ii to vi) should be followed.
However, the field meant for Operative Account number should be skipped by
pressing "Enter Key". The GL Code Number (1380) of Sundry Creditors Account
should be entered in the GL No: field for source of funds.
iii) In case the cheque is drawn on any branch of our bank not having the network
connectivity or in case the cheque is drawn on another bank, the cheque should
be sent to the other branch/bank through clearing or on collection basis
depending upon whether it is a local cheque or an outstation cheque. The
relative guidelines should be followed in this regard.
The amount of the cheque realized through clearing/collection should be credited

to Sundry Creditors Account. The amount should thereafter be reversed from
Sundry Creditors Account for placing in the Recurring Deposit Account. For this
purpose the procedure given in the above para No: 10.4 (ii) should be followed.
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10.5 On Transfer of Deposit from another branch:-
i) The proceeds of the deposit would be received from the transferor branch
through an "Account Payee" Demand Draft drawn payable as "Yourselves
account Mr/Ms/M/s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ along with several
enclosures as stated under para No: 28 of Part-A of the Chapter "Guidelines on
Deposits" in Volume-2 of the Manual of Instructions.
ii) On receipt of proceeds of the deposit, fresh Application Form and other related
forms should be obtained from the depositor.
The depositor should be identified and accepted in accordance with the KYC
guidelines unless he is an existing customer of the branch and the KYC
guidelines are already applied to him.
iii) After completion of the formalities under KYC guidelines the Demand Draft
should be responded for opening of the deposit account.
iv) A credit voucher should be prepared with full details. Description about principal
amount and the amount of interest accrued should be separately shown in the
narration and the amounts should be separately shown in the amount column of
the voucher.
The Demand Draft and the credit voucher form a set of Transfer Transaction.
transfer vouchers.
v) For opening the account the procedure given in the above para No: 9.1 should
be followed.
In the "Effective date" field the date of first instalment for the account should be
entered.
Branch Code of transferor branch should be entered in the relative field.
The original amount of the deposit (total amount of instalments) should be

entered as the "Amount Received" and not the amount transferred. Interest
Accrued amount should be entered in the relative field.
Full history of all the instalments received and the amounts of Interest Payable
Time should be entered through "RD Instalment Received Entry" option one after
the other separately. Total amount of all the instalments and IPT should tally with
the respective amounts received from the other branch.
vi) The Recurring Deposit Receipt Number indicated by the system should be noted
on the credit voucher and on the Application Form.
vii) The RD Instalment Entry should be saved. On saving the entry, the system
raises a Transfer Batch for the RD Amount and IPT amount separately by taking
the amount from the IBR DDs Paid Account.
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viii) The transfer batch number should be noted on the Demand Draft and also on the
Credit Voucher.
ix) Where an operator attends to the activity of opening of the deposit account an
Deposit Opening entry.
The officer should authorize the RD Instalment through "RD Instalment

Authorisation" option and authorise the RD Account through "RD Authorisation"
option in the Deposit Authorisation Menu.
x) The operator or the officer who attends to the activity of opening of the account
Demand Draft and also on the credit voucher respectively in token of entering
and passing the same and also on the Customer due diligence form at the place
provided for the signatures.
10.11 All the applications should be kept securely under lock and key so that no unauthorized
person can have access to them.
11. Recurring Deposit Pass Books
11.1 After the account is opened a Pass Book in the prescribed format should be prepared for
the Recurring Deposit duly writing all details therein. An officer should verify the Pass
Book and sign on the inside cover page of the book and should initial at the istalment
entry made therein.
Branch address with phone number and also the Account Number should be clearly
written in the Pass Book.
11.2 The Pass Book should be delivered to the depositor against acknowledgement in the
Pass Book Issued Register. The depositor should be advised to preserve the passbook
carefully and to submit it every time an instalment is paid into the account.
12. Due Date of Instalment
The instalment should be deposited on or before the last working day of the calendar
month for which it is due, except the last instalment.
13. Due Date of the Deposit
13.1 A recurring Deposit account matures for payment on the ostensible maturity date or one
month from the date of payment of last stipulated instalment, which ever is later.
Ostensible maturity date means the date on which the account completes the agreed
period of deposit as calculated from the date of opening the account.
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Example: A Recurring Deposit account is opened for a period of 12 months. The date of
opening the account is 5-6-2006 as such the ostensible due date of deposit is 5-6-2007
and the last installment is payable on or before 5-5-2007.
However, in this example if the depositor pays the last installment after 5-5-2007 but
before the ostensible due date (i.e., 5-6-2007), say on 10-5-2007, then the due date of
the Recurring Deposit will be postponed to 10-6-2007.
13.2 No instalment should be accepted after the ostensible due date.
14. Maturity Value
The system calculates the maturity value of Recurring Deposit basing on the stipulated
parameters.
15. Monthly Instalments
15.1 For payment of an instalment the depositor should use Pay-in-Slip (Comp No: 20102).
15.2 Whenever an instalment is paid, the depositor is to be advised to tender the relative
pass book at the counter to enable the bank to make necessary entries therein.
15.3 When an instalment amount is received through a money order, the amount should be
credited to the appropriate account.
15.4 If the amount is remitted by a cheque on an out station Bank/Branch it should include
collection charges. Such cheques should be collected first to the credit of operative
account of the depositor and then transferred to his Recurring Deposit account.
15.5 Monthly installment can be remitted through other branches of our bank. They can be
accepted free of charge by the remitting branch. The depositor should give his account
number and other particulars while making the remittance.
16. Instalment payment through cash transaction
16.1 The depositor should submit the Pay-in-slip and the instalment amount at the cash
counter.
16.2 The cashier should accept the amount, verify it in the usual manner and enter the
transaction in the Cash Terminal Entry Option without entering either the GL Number or
RD Account number. He should note the Cash Scroll Number of the transaction on the
Pay-in-slip and send it to an operator/officer for doing the needful.
The operator/officer should complete the accounting process on the Pay-in-Slip through
RD Instalment Receipt Entry Option as explained in the following para.
17. Instalment payment through Transfer transaction
Normal Transaction Entry Option should not be used for a transfer transaction for receipt
of RD Instalment. The instalment should be accounted for through RD Instalment
Receipt Entry Option as expalined in following para.
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18. RD Instalment Receipt Entry Option
18.1 RD Instalment Receipt Entry option should be invoked for completing remaining process
of a cash transaction or for putting through a transfer transaction for the instalment. the
process involves the following stages
i) Appropriate vouchers as explained in the previous paras should be prepared for

the transfer transaction.
ii) In the Option "A" should be selected for making a new entry. The Account Type
and sub type should be correctly entered as explained in the previous paras.
Transaction date/Voucher date should be entered. "Enter Key" should be
pressed in the field to get current date.
iii) "Enter Key" should be pressed in the "Effective Date" field to get current date.
iv) Total amount should be entered in "Amount of payment" field. The voucher may
contain instalment amount, amount of penalty and other charges if any.
v) The instalment amount should be entered in the "amount of instalment" field.
vi) "Interest Accrued" field should be skipped by pressing the enter Key in the field.
vii) If any penalty is colleted, the amount should be entered in "Penal charges" field.
viii) If any other charges are collected, the amount should be entered in "Other
Charges" field. The Relative GL Number and Sub Head Number should also be
entered here.
ix) The system arrives at the total various amounts entered as above. The total
amount should be same as the amount entered in the "Amount of Payment" field
, it should be equal with the total amount of the relative credit voucher..
x) Number 1 should be entered for a cash transaction and Number 3 should be

entered for a transfer transaction in the relative field.
For a cash transaction the Cash Scroll Number appearing on the Pay-in-Slip
should be entered in the relative field.
For a transaction the details of the account to which the amount should be
debited should be entered in the relative fields.
The entry should be saved. On saving the entry a Cash Entry Batch or a Transfer
Entry Batch as the case may be is raised. The Batch Number should be entered
on the relative vouchers.
xi) The operator/officer who made the entry should sign on the voucher(s).
18.2 The entry made as above should be authorised by an officer through RD Instalment
Authorisation option. The officer authorizing the entry should sign on the relative
voucher(s).
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19. Standing Instructions
19.1 Standing Instructions can be accepted from depositors who keep Current /Savings Group
of Accounts with the bank to transfer the monthly instalments of Recurring Deposit from
those accounts.
19.2 A depositor who has a fixed deposit with the branch and receives monthly interest on it
can give standing instructions to the bank to credit such interest to the Recurring Deposit
Account towards monthly instalment for Account. However, such instalment should be in
multiples of Rs.5/- only.
19.3 There is provision in the application form for giving standing instructions at the time of
opening the account. In case the depositor desires to give the standing instructions
subsequently i.e., any time after opening the account a letter should be taken to that
effect.
19.4 Instructions given in the chapter on "Guidelines on Deposits" in Volume-2 of the Manual
of Instructions should also be followed in this regard.
19.5 It may sometimes happen that the balance in the current/savings account is not
sufficient to allow the debit. In such cases, according to the recurring deposit rules, the
standing instructions would be treated as cancelled and instalment will be deemed to
have fallen in arrears. However, the party is to be informed of the insufficiency of
balance in the account.
20. Penalty for delayed payment of instalments
20.1 The monthly instalment for each calendar month of a Recurring Deposit should be paid
on or before the last working day of the month. In the event of arrears of instalment in an
account, the branch should remind the depositor politely to regularize the account failing
which penalty will be charged as decided by Head Office from time to time. For the
purpose of calculation of penalty part of a month is treated as full month.
20.2 Penalty payable in respect of delayed instalments should not be levied if the depositor
makes advance payment of equal number of instalments in the account.
20.3 Penalty can be recovered at the time of final payment.
20.4 The idea of collecting penalty on overdue instalments is only to encourage prompt
payment of monthly instalments and not to treat this as a source of income for the bank.
There may be cases of delayed payments, such as postal delays, wherein instalments
are remitted sufficiently in advance by money order but delayed in transit. In such cases
the penal charges may be waived.
21. Advance Payment of Instalments
21.1 When the depositor pays a monthly instalment, which is not yet due, the name of the
month should be recorded in the first column and entries should be made for each
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month separately, though the amount is paid in lump sum. The lump sum amount should
be in multiples of predetermined instalments.
21.2 No additional interest will be paid on instalments paid in advance.
21.3 Whenever more than one instalment is received through a single voucher each
instalment should be entered separately in the system under a single batch.
22. Application of Interest on RD Accounts
22.1 Interest on Recurring deposits should be calculated by creating the appropriate

parameters in the system.
22.2 Instalment can be paid on any day in the calendar month for which it is due. The date of
payment of an instalment need not be taken into consideration for the purpose of
calculation of interest. Number of instalments payable (whether paid or not) by the
depositor should be taken into account. It should be loaded in the interest parameter.
22.3 In case of accounts where more than six instalments are in arrears, interest need not be
provided for such accounts. If these accounts are regularized subsequently interest
provision shall be made up to date during the next half year.
22.4 Interest is calculated on quarterly compounding basis at specified rate. Interest on

Recurring Deposit accounts is provided twice in a year at the end of September and
March. When the number of months completed in an account are not in completed
quarter, interest should be provided to the nearest quarter.
22.5 Interest provided on Recurring Deposits shall be debited to P & L Interest Paid on
Recurring Deposits and credited to Interest Payable Time account
22.6 For application of half yearly interest on RD Accounts the following steps should be
followed.
i) "Interest/Charges" option in Officers Menu should be selected.
ii) RD Accrued Interest Calculation (IPT) option should be selected.
iii) "RD Interest (IPT) Accrued Interest RPT" program should be run. This
programme generates a Report of calculations of IPT for the RD account for the
relative half-year ending.
The report should be printed and the correctness of the calculations should be
verified.
If the IPT calculated is abnormally high for any account, the effective date for
each instalment should be verified by invoking "RD Instalment Receipt Entry
Option".
If the effective date differs from the transaction date, the mistake should be
corrected by through the option "Adhoc Prg to move EFF date – RD" which is
available in "Term Dep IMPL Menu" in Officers Menu.
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After correction the "RD Interest (IPT) Accrued Interest RPT" program should be
run again
iv) Finally "RD Interest (IPT) Posting" option should be invoked for posting the
interest amounts.
v) After successful running of the programmes, it should be ensured that the

account balances tally with GL figure before and after running the interest
application options.
vi) The mentioned options should be run in the same order as given above.
22.7 For June and December quarters, provision for interest accrued should be maintained
on Recurring Deposits for the three months on the last day of the quarter. The provision
should be reversed on the following working day.
23. Due date intimation
Due date intimation should be sent to the depositors, who have opted for such notices,
15 days before the maturity date of the deposit as explained in Part-B of the chapter on
Guidelines on Deposits of the Manual of Instructions.
24. Closure of RD Accounts
24.1 The deposits need to be closed for different purposes as under.
i) Closure on maturity for repayment to the depositor.

ii) Closure for investment of the deposit proceeds in term deposits
iii) Premature closure
iv) Closure for transfer to other branches
24.2 Where the depositor pays all the instalments regularly for his Recurring Deposit Account,
on maturity of the deposit full maturity value can be paid to him. In case any instalments
are irregularly paid penalty should be charged for such delayed payments as per the
guidelines given in the above para No: 20.
24.3 Discharge of the depositor should be obtained in the printed form given on the last page
of the passbook of the deposit account. The depositor should himself call at the bank for
receiving the amount. If he is having an operative account, he may request the bank to
credit the proceeds to the operative account.
24.4 The pass book should be updated. A remark shall be entered at the end of the entries
under the signature of the officer to the effect that the account is closed at the branch.
24.5 The word ‘repaid’ should be written in Red ink prominently on the title page of the pass
book. Parallel lines in Red Ink should also be drawn over the full length of all pages to
indicate that the pass book has been cancelled by repayment of Recurring Deposit
amount. The pass book should be attached to the relative debit voucher.
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The passbook may be returned to the depositor if he requests for the same. In such a
case the procedure explained under para No: 26 below should be followed.
24.6 Similar noting should be made in the application and the application should be
transferred to closed accounts applications file.
24.7 Where the amount is paid in cash, the discharge should be over a revenue stamp, if the
amount is Rs.5000/- and above.
24.8 However, no revenue stamp need be affixed if the amount is transferred to the
depositor’s Savings/Current/Overdraft account etc. In such cases, it should be ensured
that no words purporting to be an acknowledgement of receipt of amount are used and
the following endorsement is to be taken on the last page of the pass book:
“Please credit the proceeds of this Recurring Deposit to my Savings/Current/Overdraft

Account No _ _ _ _ _ _ _ _ _ _ _ _ .”
24.9 The depositor’s signature at the place of discharge should be compared with the
specimen signature on the account opening form and payment should be made only
when they agree.
24.10 The following are the steps for closure of a deposit account.
i) Recurring Deposit Repayment Entry option should be invoked and "A" should be
selected for Entry.
ii) The Deposit Number should be entered in he relative field.
iii) The system displays the net amount payable on closure in the field "Amount to
be marked for renewal".
iv) Suitable options as under should be selected for repayment/renewal of the net
amount.
24.11 If the net amount is to be invested in full as a Term Deposit, the "Enter Key" should be
pressed in the field.
If partial amount is to be marked for such investment, the required amount should be
entered in this field by correcting the amount already shown by the system.
The system raises an unbalanced Batch for the Transfer Transaction for closure of the
deposit.
A new Term Deposit Account should be opened in the system. The amount earmarked
for Term Deposit as above should be entered as the "Amount of Deposit" for the Term
Deposit.
The system raises a transfer transaction to the credit of the newly opened Term Deposit
account in the same transfer batch where the closure transaction is available. With this
the transfer batch gets balanced. The transaction would be as under.
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Debit: Recurring Deposit Account with amount of the deposit.
Debit: Interest Payable Time (RD) with the amount of IPT for the account.
Debit: P&L Interest Paid on RD with the amount of interest if any payable on closure of
the account.
Credit: P&L – Sundry Receipts (Other Taxable Receipts) with the penalty for delayed
payment of instalments, if any.
Credit: Fixed / Kalpataruvu Deposit Account with the amount selected for investment.
An officer should first authorize the RD Closure through "RD Authorisation" option and
the repayment through "DR" Option. Thereafter the officer should authorize the Term
Deposit opening entry through "Deposit Opening"→"DP" Option.
The Term Deposit Receipt should be printed, authorised and delivered in the usual
manner.
Where partial amount is selected for renewal, for the balance amount appropriate
cash/transfer transaction should be put through.
If no amount is to be marked for renewal, the amount shown in the field "Amount to be
marked for renewal" should be made ZERO and other type of transactions as under
should be selected.
24.12 For crediting the net amount to the operative account of the party, the type of transaction
should be selected as "Transfer". The Account Number to which the credit is to be given
should be entered. The system raises a Transfer Transaction as under.

the account.
Credit: The operative account of the party with the net amount payable to him.

Care should be taken at the time of entering the operative account number of the party
and also at the time authorizing the repayment transaction. Any mistake in noting the
account number may lead to wrongful payment of the deposit amount.
24.13 If payment is to be made in cash, the type of transaction should be selected as "Cash".
"Token Number" should be entered in the relative field. The system raises a Cash
Transaction. The transaction would be as under.
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the account.
Net amount would be payable in cash to the party.
A single debit voucher should be prepared for payment of cash. The transaction should
be fully described in the voucher. The voucher should be authorised for payment and it
should be put through the cash payment transaction in the usual manner.

The cashier should pay cash to the party in the usual manner.
In case aggregate of such Cash Payments to the party during the financial year is
Rs.20,000 or more, the system warns and the payment cannot be made in Cash
according to Section 269T of the Income Tax Act. In such a case the payment should be
made by credit to the account of the party or by issuing a crossed Demand Draft/Pay
Order. For complete guidelines in this regard refer to para No: 37 of Part-B "Guidelines
on Term Deposits" in the chapter "Guidelines on Deposits" in volume-2 of the Manual of
Instructions should be followed.
24.14 If a Demand Draft or a Pay Order is to be issued for the net amount, the letters DD or
PO and the name of the payee should be entered in the relative fields. The system
raises the relative transaction as under.

the account.
Credit: HO New Others (IBR-Demand Drafts) or Pay Orders Account with the net
amount payable to him.
The transaction should be authorised by an officer through "Deposit

Authorisation"→"Deposit Repayment (DR)" option. There is no need for separate
authorization for issuance of the DD/PO.
The Demand Dr aft/Pay Order should be printed and authorised in the usual manner and
handed over to the party against acknowledgement or dispatched to his address as the
case may be.
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24.15 Premature closure of a deposit is permissible. In such a case the rate of interest would
be reduced depending upon the period for which the deposit remained with the bank.
Penalty for premature closure would also be levied as per guidelines in force from time
to time.
For closing the deposit account the procedure explained in the above paragraphs for
cash or transfer transaction, as the case may be, should be followed.
In the field "Penalty to be recovered" the letter Y should be entered. The system picks up
the applicable rate of interest and calculates the interest amount and the net amount
payable.
Appropriate vouchers should be prepared and put through the account process as stated
in the above paragraphs.
24.16 If the deposit account is to be closed for transfer to another branch, the deposit account
needs to be closed before the due date at the branch. In such a case there would be no
penalty by way of reduction of the rate of interest.
The deposit account should be closed in accordance to the procedure explained above
for issuance of a Demand Draft. The Demand Draft should be issued in the name of the
transferee branch a/c the depositor.
On closure of account for transfer to another branch, the rate of interest continues at the
stipulated rate and it will not be reduced. Hence in the field "Penalty to be recovered" the
letter N should be entered so that the system does not reduce rate of interest on the
deposit.
25. Discontinued Recurring Deposit
25.1 If a depositor is unable to pay the instalments of Recurring Deposit regularly, he has the
following options:
i) To keep the account till the due date and receive quarterly compound interest on
each instalment as though it is a separate reinvestment deposit.
ii) To convert the balance in Recurring Deposit Account into Fixed or Reinvestment
Deposit Account
In such cases interest will be paid on quarterly compound basis without any
penalty provided such fixed or reinvestment deposit is held by the bank after the
date of renewal for a period longer than the remaining period of the original
Recurring Deposit.
iii) To cancel the deposit in which cases he will receive interest on quarterly
compound basis for the period the deposit remained with the bank with/without
penalty, basing on the amount of deposit and also as per the rules of the bank in
force.
25.2 For cancellation of deposit, seven days notice is required as per the rules in force.
However, it may be waived as per the discretion of the bank on case to case basis.
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25.3 For deposits cancelled within six months, penalty should be levied towards service
charges as prescribed by Head Office from time to time. Service charges shall not be
levied if the account is closed after 6 months.
25.4 When a Recurring Deposit is cancelled, any excess interest already provided in the
account is to be reversed back to P & L Account.
26. Returning of the Pass Book
26.1 The Pass Book can be returned to the depositor if he so desires after fulfilling the entire
procedure stated under Closure of RD Accounts. When the passbook is returned to the
depositor, the discharged receipt at the end of the pass book should be detached and
kept as branch record. Otherwise, a separate receipt with the same noting should be
obtained.
26.2 An acknowledgement of the receipt of closed pass book shall be secured from the
customer and kept along with the relative vouchers.
27. Overdue Deposits
27.1 If all the instalments are paid and the depositor does not call on the bank to receive the
deposit amount on due date, the maturity value of the deposit should be transferred to
‘Overdue Deposits Account'.
27.2 Amount of penalty calculated in the account if any, should be recovered before keeping
the deposit amount in the overdue deposit.
27.3 If all the installments are not paid by the depositor in a Recurring Deposit account and
he does not call on the bank on the ostensible due date of deposit, the amount paid by
the depositor plus eligible interest shall be kept in Overdue Deposits Account noting full
particulars in the relative vouchers.
27.4 If a deposit loan is outstanding as on the due date of Recurring Deposit account, the
procedure laid down in this regard, in Part-B "Guidelines on Term Deposits" of the
chapter "Guideline on Deposits" in Volume-2 of the Manual of Instructions should be
followed.
27.5 No interest would accrue on the deposits kept in Overdue Deposits Account. However,
interest can be paid for the overdue period in case the deposit is renewed as a Term
Deposit in accordance with the relative guidelines.
28. Deposit Loans and Overdrafts
28.1 A deposit loan or overdraft may be allowed during the period of a Recurring Deposit
account up to 90% on the balance of the deposit subject to the condition that minimum
amount of such loan shall be Rs.100/-.
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However, in cases where the depositors are prompt in remitting monthly instalments, the
amount of interest already provided under “Interest Payable Time” may also be taken
into consideration for arriving at the eligible amount of advance.
28.2 Recurring deposit accounts opened by minor of more than 10 years of age in his own
name, and account opened by a major on behalf of a minor with the stipulation that the
deposit is to be repaid to the latter on attaining majority, are not eligible for such loans.
28.3 Instructions laid down in the chapter on ‘Types of Constituents’ of the Manual of
Instructions should be followed while allowing loans on minor’s deposits and deposits in
joint names.
29. Duplicate Pass Book
29.1 If a pass book is spoiled, mutilated or lost, a duplicate pass book should be issued on
payment of stipulated service charges.
29.2 Instructions laid down in the chapter "Savings Bank Group of Accounts" of the Manual of
Instructions should be followed in this regard.
30. Nominations
Nomination facility is available as per rules in force. The depositors should be advised to
avail nomination facility as explained under para No: 27 of Part-A ‘General Guidelines on
Bank Deposits’ of the chapter "Guidelines on Deposits" in Voplume-2 of the Manual of
Instructions.
31. Balancing of Books
Jottings should be taken from the system at the end of every Quarter. The report should
be checked and signed by Officer and Manager. Where as I.P.T breakup reports should
be invariably printed as a part of EOD process. The reports should be verified regularly
and if difference is noticed on any day, it should be attended to immediately. If there is
any need to pass GL entries, it should be done with the knowledge of Branch Manager
only. The reports of both RD and IPT should be preserved carefully.
32. Transfer of Accounts
Though a Recurring Deposit cannot be transferred from one person to another, the
account can be transferred from one branch to another branch of the bank. Instructions
laid down under para No: 28 of Part-A " General Guideline on Bank Deposits’ of the
chapter "Guideline son Deposits" in Volume-2 of the Manual of Instructions should be
followed while making such a transfer.
*****
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Part – G : Sweccha Deposit Scheme
1. Introductory
Sweccha Deposit Scheme was introduced for the first time in April, 1987.
In the case of a Recurring Deposit Account the depositor is required to deposit the
instalments regularly into the account. It is not possible for the depositor to change the
amount of instalment or even to withdraw any of the instalments already paid. The rate
of interest is comparatively high. The scheme is useful only to customers having regular
and assured income.
In the case of a Savings Bank Account it is open for the depositor to deposit any amount
at any time into the account and also to withdraw any amount at any time from the
account. But the rate of interest on the deposit is comparatively low.
It was felt necessary to introduce a new scheme combining the merits of both the above
schemes. Thus the Sweccha Deposit Scheme was introduced. In January 1996 the
scheme was reviewed and modified. The modified scheme is in force in the bank.
The revised Sweccha Deposit Scheme is a term deposit scheme for which interest is
paid on quarterly compounding basis. The important feature of the scheme is that a
depositor can deposit a sizeable amount as a term deposit. The amount deposited is
subdivided into several units. The depositor can withdraw any number of such units
along with interest earned on such units at any time before the maturity of the deposit.
Thus the depositor will have the flexibility of withdrawing the required amount without
disturbing the other units of the term deposit.
The guidelines contained in the chapter "Types of Constituents" should be followed in

respect of different types of depositors. The guidelines given in the chapter "Guidelines
on Deposits" in Volume-2 of the Manual of Instructions should be followed mutates
mutandis for this deposit scheme.
2. Eligibility
All categories of customers are eligible under the scheme as in case of Fixed/
Kalpatharuvu deposits. The depositor should be identified as per the guidelines of KYC
norms.
i) Minimum prescribed amount is Rs.5,000/- and additional amount should be in

multiples of Rs.1,000/-
ii) Only one credit should be accepted at the time of opening of the account. No
further credits are accepted till the date of maturity.
iii) The deposit made under this scheme will be notionally sub-divided into units of
Rs.1,000/-each and each such unit will be treated as a separate deposit.
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Deposits under the scheme should be accepted for a period of ONE year to TEN years.
5. Deposit Receipt
The Term Deposit Receipt should be used for the scheme. The words "Sweccha Deposit
Scheme should be written in bold letters on the Deposit Receipt.
6. Rate of Interest
i) Rate of interest is the same as applicable to other term deposits.
ii) Interest should be paid on quarterly compounding basis as in the case of

Kalpatharuvu Deposits.
iii) All rules and regulations applicable for payment of interest of Kalpatharuvu
deposit are equally applicable for this scheme also. However the amount of
interest is not added up to the principal amount of the deposit as in the case of
Kalpataruvu Deposits.
iv) Interest is payable to the depositor only at the time of withdrawal and/or on the
date of maturity/renewal. In case of part withdrawals, each withdrawal shall be
treated as cancellation of the deposit and interest shall be applied accordingly on
the withdrawn amount.
v) The amount of interest on the deposit attracts the provisions of Tax Deduction at
Source under Income Tax Act as in the case of other term deposits.
vi) If the deposit is renewed, the applicable rate of interest shall be the rate
prevailing on the date of renewal.
vii) In case of premature closure of the account as a whole, interest at appropriate

rate as per guidelines in force shall be paid.
7. Interest Provision
7.1 Interest is not applied/paid on the deposit accounts periodically. It is paid only on
premature withdrawal or repayment on maturity.
7.2 At the end of every financial half year provision should be maintained for the amount of
interest payable on the deposits on a realistic basis.
7.3 Provision so made should be reversed on the next day, as the amount of interest is not
credited to Sweccha deposit accounts as in the case of Kalpatharuvu deposits.
8.1 The application forms and other forms explained under para No: 6 of Part-A: "Fixed
Deposits" of this chapter are applicable for this scheme also.
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The guidelines given in Part-A: "Fixed Deposits" of this chapter regarding, Customer
Acceptance Policy (CAP), Customer Identification Procedure (CIP), Customer Due
Diligence should be followed for this scheme also.
8.2 Party Master should be opened for every applicant and authorised signatory in the usual
manner. In case a Party Master already exists for the applicant/authorized signatory, the
existing party Code only should be used.
9. Operative Account for the applicant
9.1 Every applicant under this scheme should have an operative account like any account
under Current Deposits Scheme or Savings Bank Group of Accounts with the branch.
9.2 If the applicant does not have such an account he should apply for opening an operative
account in accordance to the terms and conditions applicable to the relative scheme of
the operative accounts.
9.3 All withdrawals from the Term Deposit account together with interest thereon shall be
credited to the operative account of the depositor.
9.4 The maturity proceeds if withdrawn the amount thereof together with interest shall be
credited to the operative account of the depositor.
9.5 At the time of renewal of the term deposit, that part of maturity proceeds in excess of the
amount acceptable for renewal in multiples of Rs.1,000, shall be credited to the
operative account of the depositor.
9.6 The operative account shall not be closed during the currency of the Term Deposit.
10. Vouchers, Transaction Entry and Opening of Accounts
10.1 There is no module in the branch software for opening and maintenance of the accounts
under the scheme. The accounts should be opened and maintained manually in the
prescribed registers. Transaction entry can however be done through Normal
Transaction Entry Option.
10.2 After completion of the Customer Due Diligence and after permission is give to open the
deposit account, a Credit Voucher should be prepared with full details such as the name
of the depositor, amount of deposit, due date.
10.3 The account can be opened through a cash transaction or through a transfer transaction.
The GL Code: 1170 should be used for the scheme.
10.4 In case of a Cash Transaction, on receipt the credit voucher and the cash from the
applicant, the cashier/operator should enter the transaction in the system for credit of GL
Code 1170 "Sweccha Deposits". The transaction should be authorised in the usual
manner.
78
10.5 In case of a Transfer Transaction, a cheque drawn on the operative account of the
applicant for the amount of the deposit should be obtained. If the applicant does not
have cheque book facility for his operative account, a debit voucher should be prepared
for debiting the amount of deposit to his account. The cheque/debit voucher and the
above said credit voucher form a set of transfer vouchers.
The transfer transaction entry should be made through Normal Transaction Entry Option
for debit to the account of the applicant and to the credit of GL Code: 1170 "Sweccha
Deposits" having GL Code 1170. The transaction should be authorised in the usual
manner.
10.6 A Running Account Number Register should be maintained manually for allotting
Account Numbers for the deposits opened under this scheme. The Account Type and
Sub Type should be made a part of the Account Number as in the case all other
accounts maintained in the system.
The Account type should be noted as: "SD" and the Sub Type should be noted as 1 or 2
or 22 as in the case of accounts other deposit accounts.
10.7 An account should be opened in the Deposit Ledger manually. The Account Number
allotted for the account through the Running Account Number Register should be noted
in the Ledger Folio, in the Credit Voucher and on the Application and other forms.
The amount of deposit should be posted to the credit of the account opened in the
ledger. An officer should verify the account opened and the deposit entry made in the
ledger and authorize the same. The officer should sign on the voucher(s) in the usual
manner.
10.8 A model of the deposit account is shown in Annexure No: I. The account should be
maintained in accordance to the given model.
11. Withdrawals from the deposit account
i) The depositors should be allowed to withdraw from the term deposit account any
amount in multiples of Rs.1,000 at any time before the maturity date.
ii) The minimum amount of withdrawal should be Rs.1,000/- and amount in excess
of Rs.1,000 should be in multiples of Rs.1000/-.
iii) All withdrawals should be treated as cancellation of the deposit and interest has
to be paid accordingly for that unit. The rules applicable for cancellation of
deposits as explained in Part-B "Guidelines on Term Deposits" of the chapter on
“Guidelines on Deposits” in Volume-2 of the Manual of Instructions are applicable
to this scheme also.
iv) The amount of withdrawal should be ascertained from the party for calculation of
interest. Interest should be calculated at applicable rate on the amount to be
withdrawn from the date of deposit till date of withdrawal and it should be paid
along with the amount of withdrawal.
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v) For allowing a withdrawal a debit voucher should be prepared as under for debit
to GL Code: 1170 and Debit of P&L A/C –"Interest paid on Sweccha Deposits".
Following details should be entered in the voucher.
i) For debit to GL Code: 1170

Account No:
Name of the depositor
Amount of deposit to be withdrawn:
ii) For Debit to P&L A/C - –"Interest paid on Sweccha Deposits"
Amount of interest payable on withdrawal
iii) Total amount of the voucher in figures and in words.
Signature of the depositor should be obtained at right hand bottom corner of the
voucher.
The signature of the party on the voucher should be verified and ensured that it
tallies with the relative specimen signature held on records.
vi) The amount of withdrawal from the term deposit account should be credited to
the operative account of the depositor. The amount should not be paid in cash.
A credit voucher should be prepared for crediting the total amount to the account
of the depositor. The credit voucher and the above stated debit voucher shall
form a set of transfer vouchers for the transfer transaction.
The Transfer Stamp of the branch with current date should be affixed on the set
of transfer vouchers.
The debit voucher should be posted in the Deposit Ledger and the posting
should be verified as stated in the above paragraph. The debit and credit
vouchers should be authorised in the usual manner relating to transfer vouchers.
The vouchers should be released for transaction entry in the system. The
transfer transaction should be entered through the Normal Transaction Entry
Option for debit to GL Code 1170 "Sweccha Deposit Account" with the amount
drawn from the deposit account and P&L A/c - "Interest paid on Sweccha
Deposits" with the amount of interest on the amount drawn and for credit of the
total amount to the operative account of the depositor.
The Batch Number of the transaction should be noted on the vouchers. The
entries made in the system should be authorised in the usual manner. The
vouchers should again be authorised for having verified the entry in the system.
vii) In case Income Tax is to be deducted from the interest amount, the amount of
such tax, at the applicable rate, should be credited to Sundry Creditors Account.
For this purpose suitable voucher for credit to Sundry Creditors account should
be prepared and put through the accounting process.
Tax Deduction Certificate in the prescribed format should be issued to the

depositor. The amount of tax held in the Sundry Creditors Account should be
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reversed and paid to the Government in accordance with the guidelines issued in
this regard.
Wherever tax is deducted as above, the net amount of interest only should be
credited to the account of the depositor.
viii) The balance outstanding in the deposit account on the due date will earn interest
at the contracted rate from the date of deposit till the date of maturity.
12. Payment on maturity
12.1 The Term Deposit Receipt duly discharged by the depositor should be obtained. The
signature of the depositor should be verified and ensured that it tallies with the relative
specimen signature on records.
12.2 The maturity proceeds i.e., the balance outstanding in the Term Deposit account
together with interest thereon at the contracted rate should be credited to the operative
account of the depositor at his request. The payment should not be made in cash.
For this purpose interest should be applied for the account and a set of transfer
vouchers should be prepared and the same should be put through the accounting
process as explained in the above para No: 11.
13. Renewal of the deposit
13.1 The amount outstanding in the Term Deposit Account can be renewed at the option of
the depositor.
13.2 The deposit can be renewed for the same period for which the account is originally
opened.
13.3 The amount of renewal should be in multiples of Rs.1,000 only. Any excess amount
should be credited to the operative account of the depositor.
The depositor may opt for renewal of a part of the maturity proceeds in multiples of
Rs.1,000 instead of the whole of eligible amount. In such a case the opted amount only
should be renewed and the balance amount should be credited to the operative account
of the depositor.
For crediting the amount to the account of the depositor vouchers should be prepared
and the transaction should be put through the system as stated in the previous
paragraphs.
13.4 The same Deposit Account should be continued on renewal of the deposit. The rate of
interest applicable for the renewed deposit shall be the rate in force at the time of
renewal.
13.5 The date of renewal and the fresh due date should be recorded in the Deposit Account
ledger sheet.
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13.6 For the purpose of renewal the Term Deposit no vouchers need be made. Only
recording in the Ledger Sheet is sufficient. An officer should authorize the entries in the
ledger sheet.
13.7 The date of renewal, the amount for which the deposit is renewed, the applicable rate of
interest and the new due date should be noted on the Deposit Receipt.
If the Deposit Receipt undergoes several renewals, a fresh Deposit Receipt may be
issued in lieu of the existing Deposit Receipt. The existing Receipt should be held with
the relative debit voucher.
The fact of issuance of a fresh Deposit Receipt should be noted in the Ledger Folio
clearly under the signature of the officer.
14. Automatic Renewal
14.1 Automatic renewal facility can be extended at the option of the depositors specified in
the application form.
14.2 The balance of deposit amount including interest on the date of maturity should, at the
option of the depositor, be automatically renewed for the period similar to that of original
deposit. Such automatic renewals should be continued till repayment of the deposit is
requested. However at the time of each renewal the balance outstanding in the account
in excess of multiples of Rs 1,000 should be credited to the operative account of the
depositor.
14.3 The date of renewal, amount for which renewed, applicable rate of interest and the new
due date should be noted on the receipt when it is presented to the branch.
If the Deposit Receipt undergoes several renewals, a fresh Deposit Receipt may be
issued in lieu of the existing Deposit Receipt. The existing Receipt should be held with
the relative debit voucher.
The fact of issuance of a fresh Deposit Receipt should be noted in the Ledger Folio
clearly under the signature of the officer.
15. Loans against Sweccha Deposit
15.1 Loans can be allowed upto 90% of the outstanding balance in Sweccha Deposit Account
following the same procedure applicable for term deposits.
15.2 The loan amount should be credited to the operative account of the depositor. Lien
should be marked on the deposit on allowing the loan.
15.3 Even after allowing deposit loans, withdrawals can be permitted in Sweccha Deposit
Account subject to the availability of drawing power for Deposit Loan.
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16. Premature closure of the account
16.1 The depositor seeking premature cancellation of his Sweccha Deposit Account as a
whole should give one week's notice to the branch. Duly Deposit Receipt should be
surrendered.
16.2 Interest on the deposit should be calculated up to the last day of the notice period, at the
appropriate rate of interest and credited to the deposit account. the total amount of the
deposit and interest should be credited to the operative account of the depositor.
16.3 If any deposit loan is outstanding, interest should be charged on the loan account till the
date of closure of the deposit account and the amount due to the bank should be
adjusted from the proceeds of the deposit account.
16.4 The deposit account should be closed.
17. Balancing of books
Sweccha deposit accounts should be balanced every month. The balance outstanding in
the individual accounts as on the date of balancing should be jotted in a Jotting Book.
Total of the jottings should be tallied with the balance outstanding in the General Ledger
Head of Sweccha Deposit Account. If any difference is noticed the same should be
located and rectified.
18. General Aspects
18.1 Facilities like Nomination, addition/deletion of names, transfer of deposit, advances

against deposit, etc., are available as in the case of other term deposits.
18.2 All the other guidelines stated in Part-B "Guidelines on Term Deposits" of the chapter
"Guidelines on Deposits" in volume-2 of the Manual Of Instructions are applicable to this
scheme mutatis mutandis.
*****
83
Annexure No: I
(Para No: 10.8 of Part-G)
Model Ledger Sheet for Sweccha Deposit Account
Illustration:-
Mr. A opened an account under Sweccha Deposit Scheme on 02-01-2006 with a deposit of Rs. 30,000 for ONE year. The rate of
interest for the deposit is % p.a. The due date for the deposit is 02-01-2007. He sought withdrawals of Rs.1,000 on 02-02-2006,
Rs.2000 on 05-03-2006 Rs. 5000 on 02-07-2006 and Rs. 3000 on 20-08-2006 from the deposit account . The balance available in
the account is Rs. 21,000 on the due date. The balance amount is renewed on 04-01-207 for another period of ONE year.
The ledger sheet:

Name of the account holder: Mr. A Account Number: Party Code:
Address: Telephone No: PAN No:
If PAN is not available Form No: 60 □ / Form No: 61 □
Related CD / ICD / SB / ASB / ABG / ABJ Account No: (Tick √ in related box)
Date Particulars Debit Credit Balance Rate of Due date Interest paid on the amount Initials
Rs.ps interest withdrawn / final balance
% p.a. Rate Days Amount TDS
02-1-2006 By Cash 30,000.00 30,000.00 6.25 2-1-2007 XXX XXX XXX
15-1-2006 To SB Account 1,000 29,000.00 XXXX XXXX XXX 13 XXX
05-3-2006 To SB Account 2,000 27,000.00 XXXX XXXX 4.75 62 16.13
02-7-2006 To SB Account 5,000 22,000.00 XXXX XXXX 5.75 6 M 143.75
20-8-2006 To SB Account 3,000 19,000.00 XXXX XXXX 5.75 230 112.88
04-1-2007 By Interest 1187.50 20,187.50 XXXX 6.25 1 Yr 1187.50
04-1-2007 To SB Account 187.50 20,000.00 7.25 2-1-2008
(1) Interest is not paid on the withdrawal of Rs.1,000 dated 02-02-2006 since it has not completed minimum of 15 days.
(2) Interest is paid on simple interest basis for 62 days on Rs. 2,000 withdrawn on 05-03-2006.
(3) Interest is paid on quarterly compounding basis for 6 months on Rs. 5,000 withdrawn on 02-07-2006.
(4) Interest is paid on quarterly compounding basis for 6 months and on simple interest basis for 50 days on Rs. 3000 withdrawn on
02-07-2006.
(5) Interest is paid on quarterly compounding basis at contracted rate (6.25 %) on the balance of Rs.19,000 for one year.
(6) Available account in multiples of Rs.1,000 as on 04-01-2007 is renewed at applicable rate for one year with effect from 2-1-2007.
(7) Due date for the renewed deposit is 02-01-2008. TDS is not shown since the total interest amount is less than Rs.5000 in a year.
84
Part – H : AB Money Time
(Monthly Income Deposit – Fixed Deposit)
1. Introductory
1.1 AB Money Time scheme is a Fixed Deposit scheme with assured regular income to the
depositor on monthly basis. Under this scheme interest on the Fixed Deposit is paid on
monthly basis commencing from the fourth month from the date of deposit. The interest
pertaining to the first three months is added back to the principal amount of the deposit.
Thereafter the monthly interest is calculated on discounted rate. The amount of monthly
interest under this scheme would be more than the monthly interest under the normal
method of payment of monthly interest. This will be advantageous to the depositor.
1.2 Under the scheme every depositor should have an operative account - a Current Deposit
account or a Savings Bank Account - to which the monthly interest shall be credited.
1.3 The deposit scheme is a monthly income deposit scheme. The scheme is designed
keeping in view all the segments of the population especially the retired/retiring
employees contributing additional regular monthly income.
1.4 Only cluster linked branches should accept deposits under this scheme.
2. Who can open the deposit account
AB Money Time deposit account can be opened by:
i) a single person,
ii) two or more persons with instructions:
a) payable jointly, or
b) payable Either or Survivor or Anyone or Survivor(s)
iii) a minor represented by his/her guardian, and by
iv) any organization.
3.1 Minimum period of the deposit is 15 months. Maximum period is 120 months. The period
shall be in multiples of months only. The minimum and maximum periods for which
deposits are accepted are shown in the table below.
Slab Minimum Period Multiples of Maximum Period

(in months) (in months)
1 year to less than 2 years 15 months 23
2 years to less than 3 years 27 months 35
3 years to less than 5 years 39 months 59
5 years and above 63 months 120
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3.2 Deposit should not be accepted for the following periods.
i) 2 months to 14 months
ii) 24 months to 26 months
iii) 36 months to 38 months
iv) 60 months to 62 months
4.1 Minimum amount of deposit is Rs.25,000/- and in multiples of Rs.1000/- thereafter.
4.2 There is no maximum amount under the scheme.
5.1 The application and other forms explained under para No: 6 of Part-A "Fixed Deposits"
of this chapter are applicable to this scheme also.
5.2 For fresh deposits, separate application forms for opening operative account (SB/CD)
and fixed deposit account should be obtained. These two accounts should be linked to
the same party master.
6. Rate of Interest and Payment of Interest
6.1 The rates of interest are as applicable to Domestic Term Deposit for different maturities
ruling from time to time and are subject to change as communicated by Head Office from
time to time.
6.2 The benefits extended to Senior Citizens and existing/retired staff under the normal fixed
deposit should be extended under this scheme also.
6.3 Monthly interest should be credited to the linked operative account under automatic
credit facility.
6.4 There is no need to link the account in standing instruction module.
6.5 Interest should be calculated manually to credit the operative account in case of failure
of auto interest payment option.
6.6 The three months interest should be added back to the principal amount and monthly
interest should be paid on the aggregate amount on discounted basis.
6.7 Interest should not be paid for the first three months of the deposit.
6.8 Interest should be recalculated on the stage ‘0’ (original principal) amount with the run
period interest rate, thus forming a new stage ‘1’ amount for the applicable reduced
interest in case of premature closure of the deposit.
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7. Premature cancellation and Loans against deposit
7.1 Premature cancellation shall be allowed under AB Money Time as in the case of term
deposits.
7.2 Penalty should not be levied on premature withdrawal of deposits below Rs.1.00 lac.
7.3 Loans against principal amount of the deposit can be allowed with a margin of 10% on
own deposits and 25% on third party deposits.
8. Transfer of Deposit to other branches
8.1 Transfer of AB Money Time Deposit to other branches is allowed as in the case of any
other deposit.
9. Nomination
9.1 Nomination facility in respect of deposit amounts of AB Money Time is optional. The
guidelines on ‘Nomination’ given in Part-A "Guidelines on Bank Deposits" of the chapter
"Guidelines on Deposits" in Volume–2 of the Manual of Instructions should be followed
for AB Money Time Deposits also.
10. Payment of deposit on maturity
10.1 The original principal amount should be paid at the time of maturity of the deposit.
10.2 The first three months interest on accrual basis should be paid along with the principal
amount while making payment of deposit on maturity.
11. GL Head and P&L (interest payment) Sub Head
1 AB Money Time GL Code 1151

Balance Sheet Code 2271
2 Interest Payable on Demand – AB Money Time IPD – GL Code 1349
3 P&L - Interest Paid on AB Money Time P&L Code 4999
Sub Code 071
12. General aspects
12.1 The procedure explained for opening of accounts, deposit receipt printing, reprinting,
duplicate receipt printing etc., on Fixed Deposits in this chapter may be followed for AB
Money Time Deposits also.
12.2 The Account type code for the fixed deposits under this scheme is ABMID. The Sub
Type codes are same as in other deposits.
during any financial year on the standard proforma.
87
12.4 A declaration from the customer should be taken in the format given as Annexure No. I
regarding acceptance of terms and conditions of the scheme.
should be checked and signed by Officer and Manager.
12.6 These reports should be preserved by the branch as per the guidelines issued by Head
Office from time to time.
12.7 Only cluster-linked branches should accept deposits under this scheme.
*****
88
Annexure No.1
(Para No. Part-H : 12.4)
DECLARATION
Place
To Date
The Branch Manager
Andhra Bank
______________Branch.
A/C Type Sub Type A/C Number
ABMID
Dear Sir,
Sub: AB Money Time Term Deposit.
***
I ___________________ s/o___________________, declare that I have read the terms

and conditions of AB Money Time Term Deposit. As per the scheme, the initial period of
3 months is reinvestment period and the first monthly interest for the break period if any
(from the date of completion of 3rd month till the end of the month) will be paid on the 1st
of the next month and then onwards on calendar month basis subject to TDS.
I agree to draw interest on AB Money Time on the above terms. The first three months
interest along with the principal amount will be paid to me on the due date subject to
TDS.
Yours faithfully,
___________________
(Name of the depositor)
89
Part – I : AB Tax Saver
(Fixed / Reinvestment Deposit)
1. Introductory
1.1 `AB Tax Saver’ is designed specially by the Union Government for Income Tax
assessees. The deposits are accepted under Fixed Deposits and Re-investment Plans.
1.2 Under AB Tax Saver, the assessees are offered tax benefit.
1.3 Under AB Tax Saver, the principal amount is exempted for computing taxable income.
1.4 The interest on the AB Tax Saver deposit is taxable and bank should remit such interest
under TDS as per rules in force from time to time.
1.5 The instructions contained in the following paragraphs are supplementary to those
instructions given in the chapters "Guidelines on Deposits" of the Manual of Instructions.
2. Who can make AB Tax Saver term deposits
AB Tax Saver deposits can be accepted only from an individual or a Hindu Undivided
Family who is an Income Tax Assessee and having Permanent Account Number.
3. Types of Term Deposit
i) Single holder type deposit
ii) Joint holder type deposit
a) The single holder type deposit receipt shall be issued to an individual for
himself or in the capacity of the Karta of the Undivided Family.
b) The joint holder type deposit receipt shall be issued jointly to two adults or
jointly to an adult and a minor, and payable to either of the holders or to
the survivor.
c) The customer should be identified as per KYC Norms.
AB Tax Saver Deposits should be accepted for a fixed period of five years only.
i) Minimum amount of deposit is Rs.100/- or multiples thereof.
ii) An assessee can invest in the term deposit of any amount not exceeding one
lakh rupees in a year.
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6.1 AB Tax Saver Deposit is available under Fixed Deposits and Reinvestment Plans (KTD).
6.2 Bank’s standard application form should be used for the above deposits. The guidelines
on KYC norms should complied with for opening AB Tax Saver deposit accounts.
7. Interest
7.1 The rate of interest applicable for the 5 year domestic term deposit shall apply for the
deposits under this scheme.
7.2. Senior citizens are eligible to receive 0.5% additional interest than general public.
7.3 Interest on Fixed Deposit (FD) should be paid on monthly or quarterly basis.
7.4 Interest on Reinvestment Plan Deposit (KTD) should be paid on maturity along with the
principal amount.
8. Deposit Loans, Lien and Premature Cancellation
8.1 No deposit loans is permitted under this scheme.
8.2 No lien can be noted against the deposits for any other purpose.
8.3 Premature cancellation of the deposits is not permitted.
9. Transfer of Deposit
9.1 Transfer of AB Tax Saver Deposit from one branch to another branch is allowed.
9.2 The procedure applicable for transfer of normal Fixed Deposit should be followed while
transferring the deposit under this scheme.
9.3 Request for transfer of deposit should be made in writing through an application duly
signed by the assessee in case of single holder type deposit.
9.4 In case of joint holder type deposit, the transfer application should be signed by both the
joint deposit holders.
9.5 The transfer application shall be signed by one of the joint holders if the other is dead in
case of joint holder type deposit.
9.6 AB Tax Saver Deposit should not be transferred from one bank to other bank.
10. Nomination
10.1 Nomination facility in respect of deposit amounts of AB Tax Saver is available as in the
case other deposits.
91
10.2 No nomination shall be made in respect of a term deposit applied for and held by or on
behalf of a Minor.
10.3 Nomination should be made in the prescribed form. It can be made at the time of
depositing the amount or at any time thereafter but before its maturity.
10.4 The form for nomination shall be signed by the single holder or joint holders as the case
may be.
10.5 The nomination form shall be signed by one of the joint holders if the other is deceased
at the time of making the nomination.
10.6 In the event of death of the depositor(s), the nominee shall be entitled to receive the
claim amount at any time before or after the maturity. The guidelines relating to Claims
contained in Volume-2 of the Manual of Instructions shall apply for this deposit scheme
also.
11. Payment of deposit on maturity
11.1 This is a fixed term deposit and should not be paid before the expiry of five years from
the date of deposit receipt.
11.2 In the event of death of the deposit holder/s without making nomination, legal heirs are
entitled to receive the amount due to the deceased as per the rules of the Bank in force
in respect of settlement of claims.
12. Income-tax
12.1 In case of joint accounts, the benefit of deduction of principal deposit amount from
taxable income shall be available only to the first holder of the deposit.
12.2 Interest on AB Tax Saver deposit is taxable on receipt or annual accrual basis as per
Income-tax rules.
13. Term Deposit Receipt – Specific Contents and Duplicate Receipt
13.1 Name(s), address(es) and Permanent Account Number(s) (PAN) of the depositor(s)
should be printed/written on the deposit receipt.
13.2 Signature(s) of the depositor(s) should be obtained on the face side of the deposit
receipt.
13.3 A rubber stamp containing the words "No Loan / No Lien to any other loan / No
premature closure" should be affixed both on the front and reverse sides of the deposit
receipt.
13.4 In case of loss/stealing/destruction/ mutilation of deposit receipt, the depositor/ nominee/

legal heir/s should submit an application in writing to the branch duly furnishing details of
receipt number, deposit amount, date of receipt and the circumstances for such
loss/stealing/destruction/mutilation.
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13.5 If the cause for request of duplicate receipt is satisfactory for the branch, an indemnity
bond in the prescribed format with one or more acceptable sureties or a bank guarantee
should be obtained while issuing duplicate receipt in respect of deposits above Rs.500/-.
13.6 If the deposit amount is Rs.500/- or less, indemnity bond is sufficient to issue the
duplicate deposit receipt.
13.7 Irrespective of the deposit amount, indemnity bond or surety or guarantee should not be
obtained when the receipt mutilated or defaced is surrendered and can be recognized as
original receipt for the purpose of issuing duplicate receipt.
Account type: FDTS (FD Tax Saver)

1 AB Tax Saver (FD) GL Code 1153
2 Interest Payable on Demand – AB Tax Saver (FD) IPD – GL Code 1344
3 P&L - Interest Paid on AB Tax Saver (FD) P&L Code 4999
Sub Code 074
Account type: KTDTS (KTD Tax Saver)
1 AB Tax Saver (KTD) GL Code 1162
2 P&L - Interest on AB Tax Saver (KTD) P&L Code 4999
15. General Aspects
15.1 The procedure explained for opening of accounts, deposit receipt printing, reprinting,
duplicate receipt printing etc., on Fixed Deposits in this chapter may be followed for AB
Money Time Deposits also.
15.2 The Account Type code for the Fixed Deposits is FDTS and for Kalpataruvu deposits is
KTDTS. the Subtypes are similar to other deposit accounts.
during any financial year on the standard proforma.
15.4 A Declaration of the depositor stating that the deposit amount under the scheme with
various banks does not exceed Rs.1.00 lakh under Section 80(C) of the Income Tax Act,
1961 should be obtained. Format of the declaration is given as Annexure No: I.
should be checked and signed by Officer and Manager.
15.6 These reports should be preserved by the branch as per the guidelines issued by Head
Office from time to time.
*****
93
Annexure No.1
(Para No. Part-I : 15.4)
DECLARATION
To Date: ____________
The Branch Manager
Andhra Bank
______________Branch.
Dear Sir/Madam,
Sub: Declaration of Deposits under section 80C of the Income Tax Act, 1961 (43 of
1961).
With regard to the above, I hereby declare that I, _______________________________

s/o/d/o/w/o Mr__________________________________________________ aged ____
years, occupation __________________ residing at ____________________________
have not placed term deposits exceeding Rs.1 lakh in FY 2006-200_ for the purpose of
tax saving under section 80C of the Income Tax Act, 1961 (43 of 1961) in any branch of
your Bank or with any other Banks.
This is true to the best of my knowledge and belief and hence verified and signed on this
the __________ day of _______________ 20 ___ at ____________________________
in the presence of Sri _________________________________________________
(Officer’ name with signature and code no.____________).
Yours faithfully,
___________________
A/c No.
Address as in Deposit Receipt
PAN No.
Signed in my presence ________________________
(Signature of the Officer)
*****
94
Part – J : AB Treasure
(Fixed / Reinvestment Deposit)
1. Introductory
1.1 `AB Treasure’ is designed specially for general public who intend to make safe and liquid
long-term investments. The deposits under AB Treasure carry a highly competitive rate
of interest and are accepted under Fixed Deposits and Re-investment Plans (KTD).
1.2 The instructions contained in the following paragraphs are supplementary to those
instructions given in the chapters "Guidelines on Deposits" in volume-2 of the Manual of
Instructions.
2. Eligibility
2.1 All types of constituents who can make normal Fixed Deposit or KTD are eligible to
invest under this scheme.
2.2 All conditions of eligibility as applicable to Fixed Deposit/KTD are also applicable to AB
Treasure.
AB Treasure Deposits should be accepted for a minimum period of eight years and
maximum period of 10 years in multiples of quarters.
Minimum amount of deposit is Rs.5000/- and multiples of Rs.1000/- thereof subject to a

maximum of Rs.15 lacs per deposit.
5.1 AB Treasure Deposit is available under Fixed Deposits and Reinvestment Plans (KTD).
5.2 Bank’s standard application form should be used for the above deposits.
The guidelines on KYC norms should be complied with while accepting the application
for AB Treasure deposit.
6. Interest
6.1 The rate of interest applicable for the deposits under this scheme is the rate applicable
for domestic deposits for the same tenor.
6.2. Senior Citizens are eligible to receive 0.5% additional interest than general public.
6.3 Existing/retired staff are eligible for preferential rate of interest as per rules in force.
95
7. Premature cancellation and Loans against deposit
7.1 Premature Cancellation is allowed for deposits under AB Treasure. 1% penalty should
be levied on the interest at applicable rate for the run period of deposit for premature
cancellation irrespective of the deposit amount.
7.2 No Penalty should be levied if the proceeds of premature closure are reinvested as a
new term deposit with longer maturity than the remaining period of the closed deposit.
7.3 Loan against deposit should be allowed to the extent of 75% of deposit amount only.
8. General Aspects
8.1 The guidelines on Fixed Deposits and Kalpataruvu Deposits are applicable to AB
Treasure also in respect of all other aspects not mentioned above.
8.2 Nomination facility is available as in the case of other types of deposits.
8.3 Existing/Retired staff are eligible for preferential rate of Interest on deposits and
concessional rate on interest on Loans/Overdrafts against the deposits.
1 AB Treasure (FD) GL Code 1152

2 Interest Payable on Demand – AB Treasure (FD) IPD – GL Code 1348
3 P&L - Interest Paid on AB Treasure (FD) P&L Code 4999
Sub Code 072
1 AB Treasure (KTD) GL Code 1161
2 P&L - Interest on AB Treasure (KTD) P&L Code 4999
Sub Code 073
*****
96
Part – K : Capital Gains Account Scheme - 1988
1. Introductory and Eligibility
1.1 The scheme applies to the assessees who are eligible for exemption under section 54,
54B, 54D, 54F or 54G of the Income Tax Act 1961. Depositors themselves have to verify
the applicability of the scheme to them.
1.2 All branches except Rural Branches are authorised to accept deposits under the Capital
Gains Account Scheme 1988.
2. Types of Accounts:
2.1 The deposit accounts under the scheme are to be opened under two heads namely:
a) Deposit Account -A (i.e. Savings Bank Account)

b) Deposit Account -B (i.e. Term Deposit Accounts FDR/KTD).
2.2 All the rules of S.B. Accounts and FD/KTD Accounts shall apply to the Deposit Account -
A and Deposit Account B respectively.
2.3 Cheque Book should not be issued for SB Accounts (Deposit Account-A)
2.4 Joint Accounts cannot be opened under this scheme.
3. Period of the scheme
The scheme is in force and shall continue to be in force until notification by Government
of India regarding its modification or discontinuation.
4. Opening of Account
4.1 Branch has to obtain in duplicate an Application Form as per Form-A given as Annexure
No: I. The same Application Form is to be used both for Deposit Account-A and Deposit
Account-B.
4.2 KYC Norms should be applied for opening of the account.
5. Separate Identification for the Accounts
5.1 To distinguish the deposit accounts opened under this scheme from other SB and FD /
KTD accounts, the accounts may be given a separate Account Type code as under.
Type of Account Account Type Code

Savings Bank Account CGSB
Fixed Deposit Account CGFD
Kalpataruvu Deposit Account CGKTD
97
6 Opening more than one account
The depositor intending to avail of the benefit under more than one Section shall make
separate applications in the same manner for opening different accounts.
7. Term Deposits
While opening the Deposit Account-B, the depositor should specify whether it is Fixed
Deposit or Kalpataruvu Deposit.
8. Duplicate Pass Book / Term Deposit Receipt
Duplicate Term Deposit Receipts and S.B. Pass Books may be issued as per the
existing rules and subject to observance of procedures set forth in this behalf.
9. Transfer of Deposits from one branch to the other
These deposit accounts can he transferred from one branch to another on usual lines,
provided the transferee branch is not a Rural Branch.
10. Transfer of Deposit Amount in Account- B (Term Deposit)
The deposit amount in Account- B (Term Deposit) can be transferred to deposit Account-
A at the request of the depositor either on the expiry or during the currency of the period
of the deposit. The depositor has to make such requests furnishing the particulars in
Form-B (Annexure No: II). If the conversion of the deposit account - B takes place before
the completion of the contracted period, it shall be treated as premature withdrawal and
interest be paid accordingly.
11. Utilisation / Transfer of Funds in Account-A (SB Account)
11.1 Transfer of Funds:
The depositor has the option for transfer of balance in Account-A to Account-B. For this,
the depositor has to apply to the branch in Form-B (Annexure No: II) furnishing the
details.
11.2 Utilization of Funds:
Branches are not required to verify the utilization of funds withdrawn from Account-A but
must positively ensure that all the details required to be incorporated in Form-C
(Annexure No: III) and Form-D (Annexure No: IV) are furnished by the depositor before
any withdrawal is allowed.
Branches are advised to ensure that the details furnished by the depositor are legible
and that the Forms are kept in safe custody so that they can easily be made available to
the Income Tax Department as and when required.
98
12. Withdrawal from Accounts:
12.1 Withdrawal from Account-A
i). The depositor desirous of withdrawing the amount from “ACCOUNT A” shall
apply in Form-C (Annexure No: III).
ii). Branches may allow the initial withdrawal if all the details are furnished as per
Form-C (but not for the closure of the account).
iii) For any subsequent withdrawal (i.e. other than the initial withdrawal) the
depositor shall furnish in Form-D (Annexure No: IV) in duplicate the details
regarding the manner of utilization of the immediately preceding withdrawal. The
original of this form shall be retained by the branch and duplicate be returned to
the depositor after duly authenticating the same.
iv) The branch shall refuse the depositor to withdraw any amount lying in his
account in case of failure on his part to furnish all the details as mentioned
above.
v) If the withdrawal amount exceeds Rs.25,000/- our branches shall not make
payment in 'cash’ but shall issue a Crossed Demand Drafts drawn in favour of
the person to whom the depositor intends to make payment.
vi) Permissible transactions in Account-A:
a) Transfer to and from Account-B (FDR/KTD). Form-B shall be used for the
purpose.
b) Crediting of interest on Account-A (S B Account) and/or Account-B

(FDR/KTD)
c) Withdrawal of amount as dealt with under para No: 9 of the scheme. For
first withdrawal only Form-C shall be obtained. For subsequent
withdrawals both Form-C and Form-D shall be obtained.
12.2 Withdrawal from Account-B
i) Withdrawal from “Account-B" shall not be permitted directly except by way of

credit to “Account-A”.
ii) The proceeds of “Account-B” credited to Account-A shall be permitted to be

withdrawn in the same manner stated in Para No: 12.1 above (i.e. subject to the
observance of the norms for withdrawal of amount from Account-A).
13. Nomination to Deposit Accounts:
i) Nomination can be obtained on usual lines (in favour of one or more persons but
not exceeding three).
99
ii) Nomination particulars should be obtained in Form-E (Annexure No: V).
iii) Form-F should be used for change of Nomination (Annexure No: VI).
iv) No nomination shall be made in respect of an account opened on behalf of the

“minor" or a Hindu undivided family or a firm or company or an association etc.
v) Other guidelines given in the scheme for Nomination may be adhered to.
Note:- The above given guidelines on Nomination differ slightly from the guidelines on
Nomination applicable to other types of deposit accounts. The differences are
shown in the following table.
Nomination for other types of deposit Nomination for the deposit accounts
accounts as given under para No: 27 opened under Capital Gains Account
of Part-A "General Guidelines on Scheme 1988.
Bank Deposits" of the chapter
"Guidelines on Deposits" in volume-2
of the Manual of Instructions.
Only One Nominee is permissible. Maximum of Three Nominees are
permissible.
Form DA1 for making Nomination. Form-E for making Nomination.
Form DA2 for cancellation of Form-F for changing Nomination.
Nomination.
Form DA3 for variation of Nomination.
For an account opened for a Minor, Nomination facility is not available for
the guardian of the minor can make an account opened on behalf of a
the Nomination for the account. Minor.
14. Interest payable on these deposits
i) Rates of interest payable on the deposits accepted under this scheme shall be
the same as applicable to domestic deposits (SB/FDR/KTD), unless otherwise
informed to the branches specifically. In case of KTD Accounts (Account-B) the
maturity value as applicable to domestic KTD shall be quoted.
ii) Interest on these accounts cannot be credited to any other accounts.
iii) For withdrawal of interest on these accounts, procedure out lined under point
No.12 and pare No: 9 of the scheme are to be followed.
iv) For transfer of interest on Account-B deposits to Account-A Form-B need not be
insisted upon.
15. Charge or Alienation:
Balances outstanding in the deposit accounts opened under this scheme should not be
accepted as primary or collateral security for any loans/advances granted by the Bank.
100
16. Closure of the Accounts:
i) Branches shall not permit the closure of the Accounts without the approval of the
Assessing Officer who has jurisdiction over the depositor.
ii) The depositor shall apply to the branch in Form-G (Annexure No: VII) along with
the approval of the Assessing Officer for closure of the Account-A.
iii) Branches shall pay the deposit amount along with interest by way of credit to his
usual Bank account.
iv) If a depositor dies where there is nomination, the nominee if he so desires for
closure of the account shall apply in Form-H (Annexure No: VIII) along with
approval of the Assessing Officer. In such cases, the balance in the Account
should be paid by way of credit to the nominee’s Bank Account.
v) If a depositor in respect of whose deposit no nomination is in force dies, the legal

heirs of the deceased depositor shall make an application in Form-H (Annexure
VIII) along with the approval of the Assessing Officer. In such cases, the balance
in the deposit account shall be paid by way of credit to the Bank Account of such
legal heirs.
The Assessing Officer before granting approval shall obtain the necessary
certificates from the legal heirs (i.e., succession certificate or a probate of the will
etc.,)
vi) Branches shall not grant any loan/advance/guarantee or any other credit limit
against the security of the deposit accounts A & B. They shall not be charged or
alienated in any manner.
17. General Aspects
17.1 For all transactions appropriate debit and credit vouchers should be prepared in the
usual manner. Signature of the depositor(s) should be obtained thereon. The same
should be authorised in the usual manner.
17.2 The Savings Bank, Fixed Deposit and Kalpataruvu Deposit under the scheme should be
opened in the system as explained in Chapter-2 "Savings Bank Group of Accounts", and
in Part-A "Fixed Deposits" and Part-C "Kalpataruvu Deposits" as is applicable.
*****
101
Annexure No: I
(Para No: Part-K : 4.1)
FORM-A
(To be submitted in duplicate)
(See instructions before filling in this form)
ANDHRA BANK
SERIAL NO. ______________
APPLICATION FOR OPENING AN ACCOUNT UNDER THE CAPITAL

GAINS ACCOUNTS SCHEME, 1988
To:
The Manager
Andhra Bank
______________________
I ________________________________ aged _______ years (Name & address of the

applicant/depositor) hereby apply for opening * ACCOUNT-A AND/OR ACCOUNT-B,
under the CAPITAL GAINS ACCOUNTS SCHEME 1988 (in terms of Section
*54/*54B/*54D/*54F/*54G of the Income Tax Act, 1961) in my name/*in the name of
__________________________________ ______________ ________ of whom I am
the *guardian/Karta/
*Authorized officer, and tender herewith the amount of Rs._______________ in cash/by

way of *Crossed Cheque/Demand Draft, towards deposit as per details below.
1 (a) Amount deposited
Rs. _______________ (in figures) Rs.___________ ______ (in words)*

*in cash/by*Crossed cheque/*Demand Draft No. _______dated ________
drawn on ___________________________
(b) Address of the Depositor:
**2. *I wish to make a nomination in respect of the amount to my credit in the said
account/*I do not wish to make nomination in respect of the amount to my credit
in the said account, at present.
(a) Applicant's relationship with the depositor:

(In case the depositor is minor)
(b) Whether applicant is natural guardian/guardian

Appointed by Court, for the minor depositor
(c) Date of birth of minor:
Depositors permanent I.T Account No.
102
District Ward / CircIe / Range where assessed
Previous year (as applicable in case of the depositor) From ______ To_______
Assessment year in respect of which deposit is to be made.
a Whether deposit is to be made under

ACCOUNT-A or ACCOUNT-B or
under ACCOUNT-A & ACCOUNT-B
b In case the deposit is to be made
under ACCOUNT-A & ACCOUNT-B
(i) Amount to be deposited under Rs.__________________ (In rupees)
ACCOUNT-A Rs.__________________ (In words)
(ii) Amount to be deposited under Rs.__________________ (In rupees)

ACCOUNT-B Rs.__________________ (In words)
c In case of ACCOUNT-B
(i) Period for which deposit is to be
made:
(ii) Whether the deposit is made as
*Cumulative/*Non Cumulative
Date: _______________ SIGNATURE/THUMB IMPRESSION

of the depositor/of THE GUARDIAN/
Place : _______________ KARTA/AUTHORISED OFFICER OF
THE DEPOSITOR
ADDITIONAL SPECIMEN
(FOR THE USE OF THE BANK)
1. a) Account-A No. _ _ _ _ _ _ _ _ has been opened on______________ with

Rs._______________ in the name of _________________ (Name of the
depositor)
b) Pass Book No.___________ has been issued to the applicant/Depositor.
2. (a) Account-B No. _______ _______ has been opened on ___________ with
Rs. ____in the name of _________________ as *cumulative/non
cumulative deposit.
(b) Deposit Receipt No- __________________ dated for_______ Rs.______

has been delivered on _____________________________ to the
applicant/depositor.
103
3. Cheque No. _____________ for Rs._______________ Dated__________drawn
on _____ ______ tendered by the applicant/depositor has not been
realized, hence account has not been opened.
DATE: _______________ ACCOUNTANT/MANAGER
----------------------------------------------------------------
INSTRUCTIONS FOR FILLING IN
1. *Delete what is not applicable
2. Option with respect to type of account/accounts intended to be opened and

amount to be deposited and other details (in case two accounts i.e., ACCOUNT-
A and ACCOUNT-B are to be opened) must be mentioned under the respective
columns.
3. **Nomination Form E must be submitted along with this application in case the
individual depositor intending to make nomination otherwise the applicant should
delete the portion under Column 2 of the form whichever is not applicable.
4. Column 3 is for deposits made on behalf of a minor.
5. If space provided under the column is not sufficient to furnish any detail the same
may be furnished by way of using separate enclosure and making reference of
the same in respective column.
104
Annexure No: II
(Para No: Part-K : 10)
FORM-B
ANDHRA BANK
SERIAL NO. ____________
APPLICATION FOR CONVERSION OF ACCOUNTS UNDER THE CAPITAL

GAINS ACCOUNTS SCHEME, 1988
To:
The Manager
Andhra Bank
___________________
1. ______________________ here by apply for (Name of the Applicant/* Depositor)
2. Transfer of the principal amount of Rs _________________________ (in figures)

(Rupees ___________________) (in words) together with the amount of interest
accrued in Account-B No. _______ (Deposit Receipt No._______ maintained
with your office in my name/*the name of ______________________________
(Name & Address of the Depositor)
(a) *To Account-A No. _______________ Pass Book No. __________

maintained with your office in *my name/ *the name of aforesaid
depositor;
(b) To a new Account-A which may please be opened in my name /*in

the name of aforesaid depositor.
I submit herewith the aforesaid Deposit Receipt No. __________ for the purpose
of transfer of said amount to aforesaid Account-A *which is maintained with your
office/*which is to be opened as per above.
3. (i) Opening a new Account-B in my name/*in the name of________________

__________________________ (Name & Address of the depositor) for a period
of _______Days/months/years/ with effect from _______ (date) and to transfer
the sum of Rs._______ (in figures) Rupees__________________________ (in
words) to the credit in such new Account-B out of the balance standing to the
credit in Account-A No._______________ (Pass Book No. _______ ) maintained
with your office in my name/*in the name of said depositor _________________
(Name of the depositor).
(ii) I submit herewith the aforesaid Pass Book No. _______ for the purpose of
transfer of said amount to a new Account-B.
4. The application is made by me as guardian on behalf of aforesaid__________

________________________________ (Name of the depositor) who is a minor.
5. *The application is made by me as Karta of the aforesaid_________________

__________________________________________ Hindu Undivided Family.
105
6 * The application is made by me as authorized officer of the aforesaid •firm
______ / ____________ company/*Association of Persons/*body of individuals.
SIGNATURE/THUMB IMPRESSION
of the depositor/of THE GUARDIAN/
KARTA/AUTHORISED OFFICER OF
THE DEPOSITOR
Date: __________________________
Place: ADDITIONAL SPECIMEN
FOR THE USE OF THE BRANCH
* (1) The deposit in aforesaid Account-B No. ___________ Deposit Receipt No.
_________ has been allowed to be withdrawn before maturity/*on maturity
*after maturity and total sum of principal amount Rs. ________ (in figures)
Rupees _______________________(in words) and sum of Rs. ________ (in
figures) Rupees__________________________ (in words) of interest accrued in
said Account-B, No. __________________has been transferred on __________
(date) to Account-A, No____________ Pass Book No._______________ *which
is already maintained/ *has been opened on _______________ (date) in the
name of the aforesaid depositor________________________ (Name of the
depositor) *and the Pass Book No.__________________ of the newly opened
Account-A No.____________ has been delivered on ________ (date) to the
above mentioned*applicant /*depositor
*(2) A new Account-B No._________ Deposit Receipt No.____ for of Rs_________

(in figures) Rupees__________________________________) (in words) has
been opened on _______ (date) for a period of _____ days/months/years in the
name of aforesaid depositor ______________________ (Name of the depositor)
and the sum of Rs. ___________ (in figures) Rupees_______ (in words) has
been transferred to said new Account-B No_________ on _________ (date) out
of the balance standing to the credit in the aforesaid Account-A, No. _______of
the said depositor.
DATE:______________ OFFICER-IN-CHARGE
_______________________________________________
INSTRUCTIONS
1. *Score out whichever is not applicable.
2. If the space provided in the Columns is not sufficient to furnish the requisite
details, same may be furnished by using separate enclosure and referring the
same.
106
Annexure No: III
(Para No: Part-K : 12.1(i))
FORM-C
ANDHRA BANK
Serial No._________
APPLICATION FOR WITHDRAWAL OF AMOUNT FROM ACCOUNT-A UNDER

THE CAPITAL GAINS ACCOUNTS SCHEME, 1988
To
The Manager
Andhra Bank
______________
1. I (Name of the applicant/*depositor) son of___________________________

residing at ___________________________________________(Address of the
* applicant/*depositor) wish to withdraw a sum of Rs. ____________ (in figures)
(Rupees ____________ (in words) from the ACCOUNT-A No______ (Pass Book
No. ______________maintained with your office in *my name/*the name
of______________________________________ (Name & address of the
depositor).
2. I hereby declare and confirm that the amount sought to be withdrawn is proposed
to be utilized in terms of the provisions of Section 54/*Section 54B/* Section
54D/* Section 54F’Section 54G of the Act for the following purposes
(i) ___________________ (ii) ______________________

(iii) ___________________ (iv) ______________________
(v) ___________________ (vi) ______________________
(vii) ___________________
3. I request you to please pay the aforesaid amount of withdrawal in the following
manner
* (i) Amount of Rs.___________ (in figures) (Rupees __________________

_______________________________ (In words) may be paid in cash for
the purposes mentioned at serial No. ( ) of Column 2 herein above;
* (ii) Amount of Rs. _ _ _ _ _ __ (in figures) (Rupees ____________________

(in words) may be paid to ____________________________________
(Name& address of the party to whom payment is to be made) by way of
Pay Order/Demand Draft for the purposes mentioned at Serial No.
________ ____________ of column 2 hereinabove.
4. The application is made by me as guardian on behalf of aforesaid depositor

________________________________ (Name of the depositor) who is a minor.
5. The application is made by me as authorized officer of the aforesaid depositor

firm ___________________ / _____________________*company/Association
of Persons/Body of individuals.
107
6. The application is made by me as Karta of the aforesaid depositor_________
_________________________Hindu undivided family.
DATE: SIGNATURE / THUMB IMPRESSION OF THE DEPOSITOR THE

PLACE GUARDIAN / KARTA / AUTHORISED OFFICER OF THE
DEPOSITOR
___________________
ADDITIONAL SPECIMEN
FOR THE USE OF BRANCH
(i) Withdrawal for total amount of Rs. ________________ *allowed/*not allowed

because the depositor has not furnished the requisite details in respect of his
preceding withdrawal/not allowed in terms of the provision of sub-paragraph(4) of
paragraph 9 as the withdrawal has been sought in cash.
(ii) Amount of withdrawal has been made as per below
(a) Cash Rs._______________________

(b) Cheqes/Demand Draft issued _________ ___________ (Details may be
noted)
DATE MANAGER
1. *Delete whatever is not applicable
2. Please mention the details of purpose for which amount is sought to be

withdrawn.
3. Please mention the details of amount sought to be paid in cash and by way of
Pay Order/Demand Draft with reference to the specific purpose and serial
number at which such purpose has been mentioned under column 2 of the
application and also the name of the party, account number (if any) of the party in
whose favour Demand Draft/Pay Order is sought to be issued.
4. Columns 4. 5 & 6 pertain to deposits made on behalf of a minor, a company, a

firm, a Hindu undivided family, Association of persons, Body of individuals.
Hence in case of individual deposit these columns may be scored out and in
other cases one column, which is applicable, may be retained and the remaining
two columns may be scored out.
5. Details pertaining to column No 2/3 may be furnished by way of Annexure or

Annexures if the space provided in the columns is not sufficient to furnish the
details.
108
Annexure No: IV
(Para No: Part-K : 12.1(iii))
FORM - D
ANDHRA BANK
SERIAL NO. _______
DETAILS REGARDING THE MANNER AND EXTENT OF UTILISATION OF

THEAMOUNT WITHDRAWN FROM ACCOUNT UNDER THE CAPITAL GAINS
ACCOUNTS SHCEMES, 1988.
To
The Manager
Andhra Bank
______________________
1. I, ______________________________________________________(name of
the applicant/depositor), S/o __________________________________ residing
at ________________________(address) am furnishing in terms of sub-
paragraph (3) of paragraph 9, the requisite details regarding the manner and
extent ___________________ of utilization of the amount of Rs. _____________
(Rupees _______________________ withdrawn by me on ____________ (date)
out of the balance to the credit in Account-A No: ________________ (Pass Book
No: ________________ maintained with your office in my name/*in the name of
aforesaid ___________________________________(mention the name &
address of the depositor))
2. Manner/purpose for which amount withdrawn, mentioned there above has been
utilised
Purpose Amount Party to whom Voucher No:

payment has been Receipt No with
made date
3. I hereby declare and confirm that the amount withdrawn, which is mentioned
hereinabove has been utilized*partly and the balance of Rs.__________ was re
deposited on ___________________ to the credit of aforesaid account/*wholly,
for that purpose mentioned hereinabove under column 2.
4. This declaration is made by me on behalf of the aforesaid minor depositor

_________________________ of whom I am guardian.
5. This declaration is made by me on behalf of the aforesaid *firm/*company/

association of persons/*body of individuals of whom I am the *authorized officer
to make this declaration.
109
6. This declaration is made by me as Karta of the aforesaid _______________
____________________________________________ Hindu Undivided family.
DATE SIGNATURE/ THUMB IMPRESSION OF THE DEPOSITOR

PLACE /THE GUARDIAN / KARTA/AUTHORISED OFFICER OF
THE DEPOSITOR
__________________________
ADDITIONAL SPECIMEN
PAN AND DIST/WARD/CIRCLE/RANGE WHERE ASSESSED:

FOR THE USE OF THE BRANCH
Withdrawal of Rs___________permitted/ * not permitted as the details in respect f total

amount of Rs________withdrawn on ________________ have not been furnished.
* Applicant/*Depositor has been advised to furnish the details.
DATE: MANAGER
1. * Delete whatever is not applicable.
2. Column 4,5, 6 pertain to a deposit made on behalf of a minor, firm, company, a

Hindu Undivided Family, association of persons, body of individuals. Hence
individual depositor may score out these columns and in other case only the
column which is applicable, may be retained and the remaining two columns may
be scored out.
3. If space provided under column 2 is not sufficient to furnish the requisite details,
same may be furnished by way of using separate enclosure and referring the
same under the respective column.
110
Annexure No: V
(Para No: Part-K : 13(ii))
FORM - E
(To be submitted only in case of individual depositor)
ANDHRA BANK
SERIAL NO.__________
FORM OF NOMINATION UNDER THE CAPITAL GAIN ACCOUNTS
SCHEME, 1988
To
The Manager
Andhra Bank
__________________
I, _____________________ (name of the depositor) son of _______________________

Residing at _______________________________ (address) hereby nominate the
person (s) mentioned below to whom, to the exclusion of all other persons, in the event
of my death, the amount standing to my credit in ACCOUNT-A No. _____________
PASS B00K NO.________________ /ACCOUNT-B NO.______________ DEPOSIT
RECEIPT NO.__________ under the CAPITAL GAINS ACCOUNTS SCHEME 1988,
would be payable.
S.No. Name(s) of the Relationship Full Date of birth of nominee
Nominee(s) Address(es) in case of minor
*As the nominee(s) at Serial no(s)_______ ____________ specified above is/are

minor(s). I appoint Shri/Smt/Kumari _________________________________ (Name &
full address) as the person to receive the sum due under the said account(s) in the event
of my death during the minority of the nominee(s)
Signature of Witness:
Name & Address:
Date: Signature/Thumb Impression
Place of the Depositor
PAN & DIST/WARD/CIRCLE/RANGE where assessed:
______ _________________________________________
The above nomination has been registered on __________ and entry has been made in
the pass Book No.________ for Account-A No. _____________/ Deposit Receipt
No.______________ for Account-B No.______ ________
DATE: MANAGER
111
* Delete whatever is not applicable. If space provided under the columns here in above
is not sufficient to furnish the requisite details, the same may be done by way of using
separate enclosure and referring the same under the respective columns.
Annexure No: VI
(Para No: Part-K : 13(iii))
FORM-F
(See instructions before filling in the form)
ANDHRA BANK
SERIAL NO____________
APPLICATION FOR CANCELLATION OR CHANGE OF NOMINATION PREVIOUSLY
MADE IN RESPECT OF ACCOUNT UNDER THE CAPITAL GAINS ACCOUNT
SCHEME, 1988.
To
The Manager
Andhra Bank
_______________
1. I,___________________________son of______________________________
residing at _______________________________ (Address of the depositor)
hereby cancel the nomination made by me in respect of my account/Accounts
mentioned under column 2 hereunder
2. Details of Account/Accounts
(1) Account-A No. _________________
Nomination made on_____________
In favour of ____________________
(2) Account-B No___________________
Nomination made on _____________
In favour of _____________________
3. * In the place of the cancelled nomination referred to under column 2

hereinabove I hereby nominate the person(s) mentioned below to whom, to the
exclusion of all other persons in the event of my death, the amount standing to
my credit in the account/accounts mentioned under column 2 hereinabove would
he payable.
S Name(s) of the Relationship Full Date of birth of nominee
No Nominee(s) Address(es) in case of minor
4. As the nominee(s) at serial No.(s) ____________________ stated above is/are

minor(s). I appoint Shri/Smt./Kumari_______________________________
(Name & full address) as the person to receive the sum due under the said
account(s) in the event of my death during the minority of the nominee(s).
Signature of witness:
Name & Address:
Date Signature/Thumb Impression
112
Place of the Depositor
PAN & DIST./WARD/CIRCLE/RANGE WHERE ASSESSED
The nomination referred to under column 2 hereinabove has been cancelled* and fresh
Nomination as per column 3 hereinabove has been registered on _____________ and
accordingly entry has been made in the Pass Book for Account-A No. ___________
Deposit Receipt No._________ for Account-B No._________referred to under the
column 2 hereinabove.
DATE ACCOUNTANT/MANAGER
INSTRUCTIONS FO FILLING IN
* Delete whatever is not applicable. If space provided under the columns hereinabove is
not sufficient to furnish the requisite details, the same may be done by way of using
separate enclosure and referring the same under the respective columns.
113
Annexure No: VII
(Para No: Part-K : 16(ii))
FORM- G
(To be submitted by the depositor)
ANDHRA BANK
SERIAL NO._____
APPLICATION FOR CLOSING THE ACCOUNT UNDER THE CAPITAL

GAINS ACCOUNTS SCHEME 1988 BY THE DEPOSITOR
To
The Manager
Andhra Bank
__________________
1. I, _____________________aged ______________ Years. (Name of the

Depositor/*Applicant; son of______ _________ residing
at____________________ (address of the depositor/Applicant) hereby apply in
terms sub paragraph (1) of paragraph 13 of the Scheme to close the
*account/*accounts mentioned below, which is /*are maintained, with your
office In my name/* in the name of ____________ _________ (Name & Address
of the Depositor).
2. Details of Account/Accounts
(i) ACCOUNT-A No.___________ Pass Book No. ____________

(ii) ACCOUNT-B No.___________ Deposit receipt No._________
3. I tender herewith the Pass Book/*Deposit Receipt mentioned hereinabove.
4. The application is made by me as guardian on behalf of aforesaid depositor who

is a minor and whose date of birth is _____________________________
5. The application is made by me as authorized officer of the aforesaid depositor,

the *firm ___________/____________ *company, association of persons / body
of individuals
6. The application is made by me as Karta of the aforesaid depositor, a Hindu

undivided family.
DATE SIGNATURE/ THUMB IMPRESSION OF THE DEPOSITOR / THE

PLACE: GUARDIAN / KARTA /AUTHORISED OFFICER OF THE DEPOSITOR
_____________________
114
ADDITIONAL SPECIMEN
APPROVED
(Signature (with date) and a stamp of Assessing Officer having jurisdiction)
(Details of *Account*Accounts closed and total amount paid to be recorded)
1. _________________________
2. _______________ _________
3. _________________________
4. _________________________
DATE: MANAGER
1. * Delete whatever is not applicable.
2. Column 4,5, 6 pertain to a deposit made on behalf of a minor, firm, and company,
a Hindu Undivided Family, Association of persons, body of individuals. Hence
individual depositor may score out these columns and in other case only one
respective column, which is applicable, may be retained and the remaining two
columns may be scored out.
115
Annexure No: VIII
(Para No: Part-K : 16(iv))
FORM - H
(To be submitted by the Nominee/Legal heir of the deceased depositor)
ANDHRA BANK
SERIAL NO.___________
APPLICATION FOR CLOSING THE ACCOUNT UNDER THE CAPITALGAINS

ACCOUNTS SCHEME 1988 BY THE NOMINEE/LEGAL HEIR OF THE DECEASED
DEPOSITOR.
To
The Manager
Andhra Bank
---------------------------
1. I/We ___________________________________________(Name & Address of

the nominee/legal heir of the deceased depositor) hereby apply in terms of sub-
paragraphs (2) /(3) of paragraph 13 of Scheme to close the *account/*accounts
mentioned below, which *is/*are maintained with your office in the name of the
deceased-depositor ________________________________________________
(Name & Address of the deposit and PAN and Dist/Ward /Circle/Range where
assessed)
2. In terms of *sub-paragraph (6) of the paragraph 11, I____________________
(Name of the nominee) aged ___________Years, son of___________________
(Full Address) am entitled to obtain payment due to the credit in the *accounts
mentioned under column 4 hereunder. (In case application is made by the
nominee).
3. I, ________________________ (Name of the legal heir) aged ______ years, son
of___________________resident of____________________________ (Full
address) am making this application to obtain the payment due to the credit in
the*account./*accounts mentioned under column 4 hereunder and submit
herewith the letter(s) of disclaimer given by all other legal heirs.
4. Details of *Account/*Accounts
(i) ACCOUNT-A No________________Pass Book No.__________
(ii) ACCOUNT-B No ________________Pass Book No.__________
5. *I/*we tender herewith the *Pass Book/*Deposit Receipt mentioned hereinabove
Date SIGNATURE/THUMB IMPRESSION OF THE NOMINEE

Place: / LEGAL HEIR OF THE DECEASED DEPOSITOR
ADDITIONAL SPECIMEN
116
APPROVED
(Signature (with date) and a stamp of Assessing Officer having jurisdiction)
----------------------------------------------------------------------------------------------------------------
FOR USE OF BRANCH

(Details of *Account*Accounts closed and total amount paid to be recorded)
1. __________________________
2. __________________________
3. __________________________
4. __________________________
Date: Manager
1. * Delete whatever is not applicable
2. Pass Book/Deposit Receipt as the case be should be enclosed.
3. Column 2 pertains to claim made by nominee and column 3 pertains to claim

made by legal heir(s). Hence the column, which is not applicable, may be scored
out.
*****
117

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Chapter - 3

S.No Subject Page No.

Part – A: FIXED DEPOSITS

Part – B: CALL DEPOSITS

Part – D: CASH CERTIFICATES

Part – E: BHAGYALAKSHMI DEPOSIT SCHEME

Part – F: RECURRING DEPOSITS

Part – G: SWECCHA DEPOSIT SCHEME

I Model Ledger Sheet for Sweccha Deposit Account 84

Part – H: AB MONEY TIME (Fixed Deposits)

Part – I: AB TAX SAVER

Part – K: CAPITAL GAINS ACCOUNT SCHEME, 1988

1 Introductory and Eligibility 97

I FORM-A - Application for Opening of an Account 102

2. Who can make Fixed Deposits

ii) two or more persons payable to

a) all of them jointly, or

iii) minors represented by their guardians

v) a sole proprietary concern or a partnership firm.

vi) a joint stock company, a club, a society or an association or a chartable

vii) a Government/Quasi Government department etc.

4.2 Fixed deposits can be accepted even for odd amounts.

5. Duration for the deposit

i) in multiples of completed months where period of deposits consists of complete

6. Forms required for opening of an account

6.1 For new applicants:-

a) Application Form for opening a Deposit Account (Individuals – Comp No:

Note:- i) In case of Joint Applicants, each applicant should submit a

ii) In case there is a Guardian or Mandate holder or Power of

c) Nomination Form – (DA1 – Comp No: 29108) – if Nomination facility is

d) Optional Information Form – (Comp No: 10022) of the individual(s) where

a) Application for opening a Deposit Account (Organizations - Comp No:

b) Personal Data Form (Comp No: 10021) of each authorized

c) Optional Information Form (Comp No: 10022) – of the representative(s)

6.2 For Existing Customers:-

a) Application for opening a Deposit Account (individuals - Comp No: 10001)

c) Nomination Form - (DA1 - Comp No: 29108) - if Nomination facility is

a) Application for opening a Deposit Account (Organizations-Comp No:

c) Optional Information Form (Comp No: 10022) of the representative(s)

7. Permanent Account Number (PAN) or Form 60 or 61 and Tax Deduction

7.1 Every Individual customer who is an applicant or joint applicant or an authorized

9. Customer Acceptance Policy (CAP)

9.1 No account should be opened in anonymous or fictitious / benami name(s).

10. Customer Identification Procedure (CIP)

11. Verification of the Forms

iv) all the Forms, Declarations, copies of Partnership Deed, Certificate of

13. Customer Due Diligence (CDD)

15. Voucher for accepting Deposit Amount

Credit: Fixed Deposits (Others) – GL Code 1150

16. Acceptance of Cash for the Deposit Account

17. Opening of the Deposit Account – through a Cash Transaction

18. Opening of the Deposit Account – through a Transfer Transaction

18.1 An account would be required to be opened through a transfer transaction in the

iii) On transfer of a Term Deposit Account from another branch.

18.5 On Transfer of Deposit from another branch:-

Branch Code of transferor branch should be entered in the relative field.

Other particulars such as Interest Accrued amount, interest accrued paid up to

19. Opening of Multiple Deposit Accounts with a Single Cheque

i) Separate Application Forms should be obtained for each deposit.

The Deposit Entry should be saved.

20. Printing/Preparing and delivery of the Deposit Receipt

21. Interest Payment Frequency

22. Calculation and Posting of half-yearly interest – Procedure

22.3 The following steps are involved in calculation of interest.