One of the important functions of the Bank is to accept deposits from the public for the
purpose of lending. In fact, depositors are the major stakeholders of the Banking
System. The depositors and their interests form the key area of the regulatory
framework for banking in India and this has been enshrined in the Banking Regulation
Act, 1949. The Reserve Bank of India is empowered to issue directives / advices on
interest rates on deposits and other aspects regarding conduct of deposit accounts from
time to time. With liberalization in the financial system and deregulation of interest rates,
banks are now free to formulate deposit products within the broad guidelines issued by
This policy document on deposits outlines the guiding principles in respect of
formulation of various deposit products offered by the Bank and terms and conditions
governing the conduct of the account. The document recognizes the rights of depositors
and aims at dissemination of information with regard to various aspects of acceptance
of deposits from the members of the public, conduct and operations of various deposit
accounts, payment of interest on various deposit accounts, closure of deposit accounts,
method of disposal of deposits of deceased depositors, etc., for the benefit of
customers. It is expected that this document will impart greater transparency in dealing
with the individual customers and create awareness among customers of their rights.
The ultimate objective is that the customer will get services they are rightfully entitled to
receive without demand.
While adopting this policy, the bank reiterates its commitments to individual customers
outlined in Bankers’ Fair Practice Code of Indian Banks’ Association. This document is
a broad framework under which the rights of common depositors are recognized.
1.1 KNOW YOUR CUSTOMER (KYC) POLICIES/ GUIDELINES:
Know Your Customer (KYC) is the platform on which banking system operates to avoid
the pitfalls of operational, legal and reputation risks and consequential losses by
scrupulously adhering to the various procedures laid down for opening and monitoring
of accounts. The Bank shall follow appropriate Know Your Customer Policies/
guidelines, procedures and internal control mechanism designed to:
Establish and document the true identity and address of the customers who
maintain/establish relationships, open accounts or conduct business transactions.
Obtain background information on existing and/or new customers.
Safeguard the Bank from the risks of doing business with any individual or entity
whose identity cannot be determined.
Protect the Bank from the risks of having business relationship with any individual or
entity who refuses to provide information, or who has provided information that
contains significant inconsistencies which cannot be resolved after due verification.
1.2 IDENTIFICATION THROUGH DOCUMENTS PROVIDED BY THE CUSTOMER:
The Bank shall establish customers’ identity (true name, residential and mailing
address) with the help of certain Officially Valid Documents (OVDs) as may be provided
by the customer concerned in original.
A.Officially Valid Documents (OVDs):Government of India has made
amendment to the “Prevention of Money-Laundering (Maintenance of Records)
Rules, 2005” and has published the same in the extraordinary official gazette
Notification No. 439 dated June 01, 2017. In terms of the notification, “Officially
valid document” means:-
The Driving License,
The Voter’s Identity Card issued by Election Commission of India,
Job Card issued by NREGA duly signed by an officer of the State
The letter issued by the National Population Register containing details of
Any other document as notified by the Central Government in consultation
with the Regulator
Provided that where ‘simplified measures’ are applied for verifying the
identity of the customers, i.e., for Low Risk Customers, where a prospective
customer is unable to produce any proof of identity as mentioned above, the
following documents shall be deemed to be OVD :
Identity card with applicant’s photograph issued by Central/ State
Government Departments, Statutory/ Regulatory Authorities, Public
Sector Undertakings, Scheduled Commercial Banks, and
Public Financial Institutions;
Letter issued by a Gazetted officer, with a duly attested
photograph of the person.
Provided further that where “simplified measures” are applied for verifying the
limited purpose of proof of address of the customers, i.e., for Low Risk
Customers, where a prospective customer is unable to produce any proof of
address, the following documents shall be deemed to be “Officially Valid
Utility bill, which is not more than two months old, of any
service provider (electricity, telephone, post-paid mobile phone,
piped gas, water bill);
Property or Municipal Tax receipt;
Bank account or Post Office savings bank account statement;
Pension or family Pension Payment Orders (PPOs) issued to
retired employees by Government Departments or Public
Sector Undertakings, if they contain the address;
Letter of allotment of accommodation from employer issued by State or
Central Government departments, statutory or regulatory bodies,
public sector undertakings, scheduled commercial banks, financial
institutions and listed companies. Similarly, lease and license
agreements with such employers allotting official accommodation; and
Documents issued by Government departments of foreign
jurisdictions or letter issued by Foreign Embassy or Mission in India
B. AADHAAR & PAN Mandatory documents:
The Prevention of Money-laundering (Maintenance of Records) Second
Amendment Rules, 2017, also incorporates the following-
Any individual who is eligible to be enrolled for an Aadhaar number,
would be required to submit the following documents to the bank at the time
of establishment of account based relationship-
Aadhaar number issued by the Unique Identification Authority of India;
The Permanent Account Number (PAN) or Form No.60 as defined in
Income Tax Rules, 1962
Where an Aadhaar number has not been assigned to a customer, he/she
would be required to furnish proof of application of enrolment for Aadhaar
and in case the PAN is not submitted, one certified copy of an “OVD” shall
be required to be submitted along with Form 60.
If the customer is not eligible to be enrolled for an Aadhaar number, he
shall submit PAN or Form No. 60 as defined in the IT Rules, 1962.
But if PAN is not submitted, the customer shall submit one certified copy of
an “OVD” containing details of his identity and address, one recent
Branches, at the time of receipt of the Aadhaar number under provisions
of this rule, shall carry out authentication using e-KYC authentication facility
provided by UIDAI.
In case if customers is NRI or is a resident in the States of Jammu and
Kashmir, Assam or Meghalaya and does not submit the PAN, he would be
required to submit one certified copy of OVD containing details of his identity
and address and one recent photograph along with Form 60.
In case the identity information relating to the Aadhaar number or PAN
submitted by the customer doesn’t have current address of the customer,
he/she shall be required to submit an OVD to the Bank.
2. TYPES OF DEPOSIT ACCOUNTS:
While various deposit products offered by the Bank are assigned different names. The
deposit products can be categorised broadly into the following types. Definition of major
deposits schemes is as under: -
“Demand deposits” means a deposit received by the Bank which is
withdrawable on demand;
“Savings deposits” means a form of demand deposit which is subject to
restrictions as to the number of withdrawals as also the amounts of withdrawals
permitted by the Bank during any specified period;
“Term deposit” means a deposit received by the Bank for a fixed period
withdrawable only after the expiry of the fixed period and includes deposits such
as Recurring / Double Benefit Deposits/Fixed Deposits /Monthly Income deposit /
Quarterly Income deposit etc.
“Notice Deposit” means term deposit for specific period but withdrawable on
giving at least one complete banking day’s notice;
“Current Account” means a form of demand deposit wherefrom withdrawals are
allowed any number of times depending upon the balance in the account or up to
a particular agreed amount and will also include other deposit accounts which
are neither Savings Deposit nor Term Deposit;
2.1 ACCOUNT OPENING AND OPERATION OF DEPOSIT ACCOUNTS:
The Bank before opening any deposit account will carry out due diligence as a
‘customer identification’ measure, as required under “Know Your Customer” (KYC)
guidelines issued by RBI under Prevention of Money Laundering Act 2002 rules &
regulations and Prevention of Money Laundering (Maintenance of Records) Rules
2005 and subsequent amendments from time to time. If the decision to open an
account of a prospective depositor requires clearance at a higher level, reasons for
any delay in opening of the account will be informed to him and the final decision of
the Bank will be conveyed at the earliest to him.
The account opening forms and other materials would be provided to the
prospective depositor by the Bank. The same will contain details of information to be
furnished and documents to be produced for verification and/ or for records. It is
expected from the bank official opening the account, to explain the procedural
formalities and provide necessary clarification sought by the prospective customer.
Documents and other information should be collected in respect of different
categories of customers depending on perceived risk and keeping in mind the
requirements of PML Act, 2002 and instructions/guidelines issued from time to time.
Account should not be opened where it is not possible to apply appropriate customer
due diligence measures i.e. unable to verify the identity and /or obtain required
documents due to non cooperation of the customer or non reliability of the
data/information furnished to the bank.
For Deposit products like Savings Bank Account and Current Deposit Account, the
bank will normally stipulate certain minimum balances to be maintained as part of
terms and conditions governing operation of such accounts. Failure to maintain
minimum balance in the account may attract levy of charges as specified by the
bank from time to time. For Saving Bank Account the bank may also place
restrictions on number of transactions, cash withdrawals, etc., for given period.
Similarly, the bank may specify charges for issue of cheque books, additional
statement of accounts, duplicate passbook, folio charges, etc. All such details,
regarding terms and conditions for operation of the account and schedule of charges
for various services provided will be communicated by way of notice displayed
prominently on Bank’s notice board/on Bank’s web site to the prospective depositor
while opening the account.
Savings Bank Accounts can be opened for eligible person/persons and certain
organizations/agencies (as advised by Reserve Bank of India from time to time)
Current Accounts can be opened by individuals / partnership firms / Private and
Public Limited Companies / HUFs / Specified Associates / Societies / Trusts.
Departments of Authority created by Government (Central or State) Limited
Liability Partnership, etc.
Term Deposits Accounts can be opened by individuals / partnership firms /
Private and Public Limited Companies / HUFs/ Specified Associates / Societies /
Trusts, Departments of Authority created by Government (Central or State),
Limited Liability Partnership, etc.
Branches should periodically update customer identification data (including
photograph/s) after the account is opened. In the light of practical difficulties/
constraints in obtaining/ submitting fresh KYC documents at frequent intervals, as
the relative documents submitted earlier specially by low-risk customers have
remained unchanged in most of the accounts, the undernoted guidelines should be
Freezing and closure of accounts
- Branches/offices would need to continue to carry out on-going due diligence measures while commencing an account-based relationship. Such measures include (a)identifying and verifying the customer and beneficial owner on the basis of reliable and independent information and data or document; and(b)
ensuring that their transactions are consistent with the bank’s knowledge of the client, his business and risk profile and, wherever necessary, the source of funds.
- Full KYC exercise will be required to be done at least every two years for high
risk, every eight years for medium risk and at least every ten years for low
risk customers. The time limits prescribed for such periodical updation would
apply from the date of opening the account / last verification of KYC.
- Full KYC may include all measures for confirming identity and address and
other particulars of the customer that the bank may consider reasonable and
necessary based on the risk profile of the customer.
- Fresh photographs will be required to be obtained from minor customer on
- Further, the requirement of applying client due diligence measures to
existing clients at an interval of two/eight/ten years in respect of
high/medium/low risk clients respectively, would also continue taking into
account whether and when client due diligence measures have previously
been undertaken and the adequacy of data obtained.
- In order to further ease the difficulties in complying with the KYC
requirements, within the overall framework of the Prevention of Money
Laundering Act, 2002 (PMLA) and Rules (PMLR), it is clarified as under :-
- Banks need not seek fresh proofs of identity and address at the time of
periodic updation, from those customers who are categorized as ‘low
risk’, in case of no change in status with respect to their identities
and addresses. A self-certification by the customer to that effect should
suffice in such cases. In case of change of address of such ‘low risk’
customers, they could merely forward a certified copy of the
document (proof of address) by mail/ post, etc. Banks should not
insist on physical presence of such low risk customer at the time of
- If an existing KYC compliant customer of a bank desires to open
another account in the same bank, there should be no need for
submission of fresh proof of identity and/or proof of address for the
1. Prevention of Money-laundering (Maintenance of Records) Second
Amendment Rules, 2017 published vide extraordinary official gazette
Notification No. 439 dated June 01, 2017.
For all the customers who are eligible to be enrolled for Aadhaar and
for obtaining a PAN do not submit the same, would be required to
submit it within 6 (six) months from the date of opening of the
In case the customer fails to submit the Aadhaar number and PAN
within the aforesaid six months period, the said account shall cease
to be operational till the time the Aadhaar and PAN is submitted.
Customers having account based relationship prior to 1st June,
2017, would be required to submit Aadhaar and PAN within 31st
In case of existing customer having an account prior to 1st June,
2017, fails to submit the Aadhaar number and PAN by 31st
December, 2017, the said account shall cease to be operational till
the time the Aadhaar and PAN are submitted.
2. In case of non-compliance of KYC requirements by the customers despite
repeated reminders by the banks, RBI has advised that banks may impose
‘partial freezing’ on such KYC non-compliant in a phased manner.
3. During the course of such partial freezing, the account holders can revive
their accounts by submitting the KYC documents as per instructions in
force. Accordingly, in terms of the directions received from RBI, it is
advised as under:–
While imposing ‘partial freezing’, branches/offices should ensure
that the option of ‘partial freezing’ is exercised after giving due
notice of three months initially to the customers to comply with
KYC requirement and followed by a reminder for further
period of three months.
Thereafter, branches/offices may impose ‘partial freezing’ by
allowing all credits and disallowing all debits with the freedom to
close the accounts.
If the accounts are still KYC non-compliant after six months of
imposing initial ‘partial freezing’, branches/offices may disallow all
debits and credits from/to the accounts, rendering them inoperative.
Further, it is open to the bank to close the account of such
customers after issuing due notice to the customer explaining the
reasons for taking such a decision. Such decisions of closure of
account, however, need to be taken at a reasonably senior
level, i.e. at Zonal Manager Level.
4. In the circumstances when the branch believes that it would no longer
be satisfied about the true identity of the account holder, the branch should
file a Suspicious Transaction Report (STR) with Financial Intelligence Unit –
India (FIU-IND) under Department of Revenue, Ministry of Finance,
Government of India through their respective Zonal Offices stating the
details of the status of the account and specific reasons for filing of STR.
In addition to the due diligence requirements, under KYC norms the Bank is
required by law to obtain Permanent Account Number (PAN) or alternatively
declaration in Form No. 60 or 61 as specified under the Income Tax Act / Rules.
Deposit accounts can be opened by an individual in his own name (status: known
as account in single name) or by more than one individual in their own names
(status: known as Joint Account). Savings Bank Account can also be opened by
a minor jointly with natural guardian or with mother as the guardian (Status:
known as Minor’s Account). Minors above the age of 10 will also be allowed to
open and operate saving bank account independently. However, no overdrafts
will be granted to these minors. SB account can also be opened by a minor
represented by guardian or jointly with a major, where minor is represented by
natural guardian. Minors above the age of 10 will also be allowed to open and
operate SB account subject to prevailing guidelines of the Bank.
Operation of Joint Account – The Joint Account opened by more than one
individual can be operated by single individual or by more than one individual
jointly. The mandate for operating the account can be modified with the consent
of all account holders. The Savings Bank Account opened by minor jointly with
natural guardian /legal guardian can be operated by such natural guardian/ legal
guardian only till attainment of majority.
The joint account holders can give any of the following mandates for the disposal
of balance in the above accounts:
At the request of the depositor, the Bank will register mandate / power of attorney
given by him authorizing another person to operate the account on his behalf.
The term deposit account holders at the time of placing their deposits can give
instructions with regard to closure of deposit account or renewal of deposit for
further period on the date of maturity. In case of absence of any instructions
deposits will be treated as an auto renewal deposit and should be renewed for a
similar period as per the tenure of the existing deposit.
A statement of account will be provided by the Bank to Savings Bank as well as
Current Deposit Account Holders periodically as per terms and conditions of
opening of the account. Alternatively, the Bank may issue a Pass Book to Savings
Bank account holders.
- Either or Survivor: If the account is held by two individuals say, A & B, on
maturity, the final balance along with interest, if applicable, will be paid to any of
the survivors . If one of the depositors expires before maturity, no pre-payment of
the fixed/term deposit may be allowed without the concurrence of the legal heirs
of the deceased joint holder.
- Anyone or Survivor/s : If the account is held by more than two individuals
say, A, B and C, the final balance along with interest, if applicable, will be paid
to any of the survivors on death of any two account holders.
- Former or Survivor/s: If the account is held by two individuals A & B, the
former alone can operate/ withdraw the matured amount of the fixed/term
deposit, when both the depositors are alive. If the former expires before the
maturity of the fixed/term deposit, the SurvIvor can withdraw the deposit on
maturity. Premature withdrawal would however require the consent of both the
parties, when both of them are alive, and that of the surviving depositor and the
legal heirs of the deceased in case of death of one of the depositors.
Bank provides password encrypted monthly statement of account in PDF format to
all depositors, who have registered their e- mail id with the Bank.
Account portability facility is available. The customer is allowed to transfer his
account from one branch to another branch without restrictions as long as full KYC
has been done. Branches may transfer existing accounts at the transferor branch
to the transferee branch without insisting on fresh proof of address and on the
basis of a self-declaration from the account holder about his/her current address.
The account number remains unchanged pan India for any number of transfers
requested by customer.
Inability of an existing customer to furnish details required by the Bank to fulfill
statutory obligations could also result in closure of account after due notice(s) is
provided to the customer.
Levying of penal charges on non-maintenance of minimum balances in Inoperative
A/Cs has been discontinued.
Individuals resident in India may be permitted to include non-resident close relative
(s) (relatives as defined in Section 6 of the Companies Act, 1956) as a joint holder
(s) in their resident bank accounts on “Former or survivor” basis. However, such
non-resident Indian close relatives shall not be eligible to operate the account
during the life time of the resident account holder.
All Beneficial Owners shall be subjected to KYC. Consequent upon Government of
India Notification on “Prevention of Money-Laundering (Maintenance of Records)
Amendment Rules, 2013” (Rules), published in the extraordinary official gazette
vide G.S.R. No. 576 (E) dated August 27, 2013, and subsequent RBI circular dated
17.07.2014, the amended procedure for Identification of Beneficial Owners is
appended for strict adherence to the field functionaries.
e-KYC service of UIDAI shall be accepted as a valid process for KYC verification
under the PML Rules.
Cash withdrawal at Non-base branches is permitted up to Rs 50,000/- only. The
cash payment will be made to account holder only, on production of his identity
proof, and not to any third party.
With the objective to provide more caring, convenient and attractive services to the
customers and as part of the Bank’s continuous efforts to improve its existing
services, Bank has introduced online donation facility to customers. Online
donation facility is available through internet banking channel
(URL:https://allbankonline.in). This facility is available to our Bank’s customers.
Customers who have registered their mobile numbers with the Bank can avail
missed call services by dialing 092-24-150-150. The present balance in the
account with last five transactions will be sent to such customers on dialing this
- Where the client is a company, the beneficial owner is the natural person(s),
who, whether acting alone or together, or through one or more juridical person,
has a controlling ownership interest or who exercises control through other
Explanation.- For the purpose of this sub-clause :
- "Controlling ownership interest" means ownership of or entitlement to more
than twenty-five percent of shares or capital or profits of the company.
- "Control" shall include the right to appoint majority of the directors or to
control the management or policy decisions including by virtue of their
shareholding or management rights or shareholders agreements or voting
- Where the client is a partnership firm, the beneficial owner is the natural
person(s), who, whether acting alone or together, or through one or more
juridical person, has ownership of/ entitlement to majority more than fifteen
percent of capital or profits of the partnership.
- Where the client is an unincorporated association or body of individuals,
the beneficial owner is the natural person(s), who, whether acting alone or
together, or through one or more juridical person, has ownership of or
entitlement to more than fifteen percent of the property or capital or
profits of such association or body of individuals.
- Where no natural person is identified under (i) or (ii) or (iii) above, the
beneficial owner is the relevant natural person who holds the position of
senior managing official.
- Where the client is a trust, the identification of beneficial owner(s) shall
include identification of the author of the trust, the trustee, the beneficiaries
with fifteen percent or more interest in the trust and any other natural
person exercising ultimate effective control over the trust through a chain of
control or ownership.
- Where the client or the owner of the controlling interest is a company listed
on a stock exchange, or is a subsidiary of such a company, it is not
necessary to identify and verify the identity of any shareholder or beneficial
owner of such companies.