One of the important functions of the Bank is to accept deposits from the public for the purpose of lending. In fact, depositors are the major stakeholders of the Banking System. The depositors and their interests form the key area of the regulatory framework for banking in India and this has been enshrined in the Banking Regulation Act, 1949. The Reserve Bank of India is empowered to issue directives / advices on interest rates on deposits and other aspects regarding conduct of deposit accounts from time to time. With liberalization in the financial system and deregulation of interest rates, banks are now free to formulate deposit products within the broad guidelines issued by RBI.
This policy document on deposits outlines the guiding principles in respect of formulation of various deposit products offered by the Bank and terms and conditions governing the conduct of the account. The document recognizes the rights of depositors and aims at dissemination of information with regard to various aspects of acceptance of deposits from the members of the public, conduct and operations of various deposits 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.
KNOW YOUR CUSTOMER (KYC) 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 conduct 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 relationships 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 investigation.
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 as may be provided by the customer concerned in original.
Government of India has notified the “Prevention of Money-Laundering (Maintenance of Records) Amendment Rules, 2013” (Rules) and have published the same in the extraordinary official gazette vide G.S.R. No. 576 (E) dated August 27, 2013. In terms of the notification, “Officially valid document” means :-
The Driving License,
The Permanent Account Number (PAN) Card,
The Voter’s Identity Card issued by Election Commission of India,
Job Card issued by NREGA duly signed by an officer of the State Government,
The letter issued by the Unique Identification Authority of India (UIDAI) containing
details of name, address and Aadhaar number, or
Any document as notified by the Central Government in consultation with the
In terms of the above notification, RBI has issued instruction dated 17.07.2013 on the line that henceforth, only the documents mentioned in the rule or any other document as notified by the Central Government in consultation with the Regulator would be ‘officially valid documents’. The discretion given to banks earlier stands withdrawn.
TYPES OF 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 required under “Know Your Customer” (KYC) guidelines issued by RBI Anti-Moneylaundering rules and regulations and or such other norms or procedures as per the Customer Acceptance Policy of the bank. If the decision to open an account of a prospective depositor requires clearance at a higher level, reasons for any delay in opening of the account will be informed to him and the final decision of the Bank will be conveyed at the earliest to him.
The account opening forms and other material 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 record. It is expected of the bank official opening the account, to explain the procedural formalities and provide necessary clarification sought by the prospective depositor including information to prepare a profile or Risk categorization of the customer into High /Medium/Low when he approaches for opening a deposit account. The Bank may not open account where the prospective customer is unable to furnish information and/or in the event of non cooperation by him.
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, it has been decided to amend the instructions as under :
Branches/offices would need to continue to carry out on-going due diligence measures while commencing an account-based relationship. Such measures include identifying and verifying the customer and beneficial owner on the basis of reliable and independent information and data or document.
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.
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.
Carry out ongoing due diligence of existing clients in order to ensure 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.
Earlier, ‘Positive confirmation’ (obtaining KYC related updates through email/ letter/telephonic conversation/forms/interviews/visits, etc.), was requiredto be completed at least every two years for medium risk and three years for low risk customers. Now, RBI has reviewed the matter based on feedback received in light of provisions of the PML Rules. Accordingly, it is advised that while the requirements of client due diligence measures applied when
establishing an account-based relationship, and on-going due diligence would continue as indicated in paragraph (i), (ii), (iii) & (iv) above, it has beendecided to dispense with the requirement of ‘positive confirmation’ as noted above.
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. Physical presence of the clients may, however, not be insisted upon at the time of such periodic updations.
Fresh photographs will be required to be obtained from minor customer on becoming major.
The time limits prescribed above would apply from the date of opening of the account/ last verification of KYC.
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:
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 Survovor 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.
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 (maximum one year).
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.
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.
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 means.
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 agreements.
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.
E-Aadhaar may be treated as an ‘Officially Valid Document’ under 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 number.
In case of KYC complied account introduction will no more be mandatory requirement and the account can be opened without introduction. However, it is reiterated that the KYC norms have to be strictly adhered to and there shall not be any compromise on KYC Compliance.
Introduction will be obtained, where relaxed KYC norms are applicable if any, in case of “All Bank Saral Savings Account/Small Account etc”.
2.3 WRITING OF CHEQUES IN ANY LANGUAGE
The bank will accept cheques written in Hindi, English or in the concerned Regional language. The Branches should accept the cheque with Saka calendar date.
INTEREST PAYMENT :
Savings Bank Account: Savings Interest is deregulated by Reserve Bank of India
and paid as decided by bank. Interest shall be calculated on daily closing balance.
Term Deposit: Term deposit interest rates are decided by the Bank within the
general guidelines issued by the Reserve Bank of India from time to time.
In terms of Reserve Bank of India directives, interest shall be calculated at quarterly intervals on term deposits and paid at the rate decided by the Bank depending upon the period of deposits. In case of monthly deposit scheme, the interest shall be calculated for the quarter and paid monthly at discounted value. The interest on term deposits is calculated by the Bank in accordance with the formulae and conventions advised by Indian Banks’ Association.
In all cases of domestic term deposits (period of deposit more than a year) where the terminal quarter is incomplete, interest should be calculated for the actual number of days, reckoning the year 365/366 days viz the calculation of interest on such deposits should be in order of completed quarters and days.
The rate of interest on deposits will be prominently displayed in the branch
premises. Changes, if any, with regard to the deposit schemes and other related
services shall also be communicated upfront and shall be prominently displayed.
The Bank has statutory obligation to deduct tax at source if the total interest paid / payable on all term deposits held by a person exceeds the amount specified under the Income Tax Act. In case where PAN No. is not submitted by the customer TDS will be deducted at higher rate as per IT rules (20% at present). The Bank will issue a tax deduction certificate (TDS Certificate) for the amount of tax deducted. The depositor, if entitled to exemption from TDS, can submit declaration in the prescribed format at the beginning of every financial year.
Bank will pay interest to its customer on the amount of collection instruments, in case there is delay in giving credit beyond the stipulated time as per guidelines in Compensation Policy.
If the due date of a Term Deposit falls on a holiday, Sunday, non-business working
day then inetrest will be paid for such intervening day(s), at the originally
contracted rate, till the succeeding working day.
All transactions, including payment of interest on deposits/ charging of interest on
advances, would be rounded off to the nearest rupee; i.e. fractions of 50 paise and
above shall be rounded off to the next higher rupee and fraction of less than 50
paise shall be ignored. Issue prices of cash certificates should also be rounded off
in the same manner.
Senior Citizens are eligible for an additional interest over and above card rate for
all maturities. The additional interest paid to Senior Citizens on Term Deposits is
subject to change from time to time. At present additional interest rate for Senior
Citizen is 0.50%.
One percent additional rate of interest over its ruling rate of interest on various term
deposit schemes and Savings Bank deposits in the name of a staff member,
individually or jointly with any member of his / her family shall be paid by the Bank.
4.1. MINOR’S ACCOUNTS:
In terms of Indian Majority Act, a minor is a person below the age of 18 years, but incase of minor whose guardian is appointed by the Court, he/she attains the majority at the age of 21 years.
The minor can open Savings Bank Account and the same can be operated by the natural guardian/guardian. It is permissible to open any type of deposit account in the name of a minor operated by natural guardian/guardian within the framework for minor account – but no current account should be opened, in the name of the minor.
On attaining majority, the erstwhile minor should confirm the balance in his/her account and if the account is operated by the natural guardian /guardian, fresh specimen signature of erstwhile minor duly verified by the natural guardian would be obtained and kept on record for all operational purposes.
The Bank shall normally allow a literate minor over the age of 10years to operate a Savings Bank account and also Recurring Deposit account. The Bank shall takeadequate care to see that the minor is receiving payment himself/herself when such account is opened. No cheque book will be issued in these accounts. The operations in these accounts and the facilities provided to these accounts are decided by the Bank from time to time.
4.2. BASIC SAVINGS DEPOSIT ACCOUNT
The bank is committed to providing basic banking services to disadvantaged sections of the society. Banking services will be offered to them through “AllBank Saral Savings Account (Basic Savings Bank Account)” and accounts will be opened with relaxed customer acceptance norms as per regulatory guidelines.
'Small account' means a savings account in a banking company where
The aggregate of all credits in a financial year does not exceed rupees one lakh;
The aggregate of all withdrawals and transfers in a month does not exceed rupees ten thousand; and
The balance at any point of time does not exceed rupees fifty thousand .
it can be converted to normal SB account after fulfilling the KYC guidelines and maintenance of applicable minimum balance.
4.3 ACCOUNTS OF CLOSE RELATIVES
In case of close relatives e.g. wife, son, daughter and parents etc. who live with their husband, father/mother, and son as the case may be, banks can obtain an identity document and utility bill of the relative with whom the prospective customer is living along with a declaration from the relative that the said person (prospective customer) wanting to open an account is a relative and is staying with him/her. Banks can use any supplementary evidence such as a letter received through post for further verification of the address.
4.4. ACCOUNTS OF MIGRATORY WORKER, TRANSFERRED EMPLOYEE etc
In case migratory worker, transferred employees etc, customers may submit only one documentary proof of address (either current or permanent) while opening a bank account or while undergoing periodic updation. In case the address mentioned as per ‘proof of address’ undergoes a change, fresh proof of address may be submitted to the branch within a period of six months.
In case the proof of address furnished by the customer is not the local address or address where the customer is currently residing, the bank may take a declaration of the local address on which all correspondence will be made by the bank with the customer. No proof is required to be submitted for such address for correspondence/local address. This address may be verified by the bank through ‘positive confirmation’ such as acknowledgment of receipt of (i) letter, cheque books, ATM cards; (ii) telephonic conversation; (iii) visits; etc. In the event of change in this address due to relocation or any other reason, customers may intimate the new address for correspondence to the bank within two weeks of sucha change
4.5. OTHER ACCOUNTS
Stricter documentation and due diligence to be exercised as given in the KYC Policy
Non face to face customers
Customers with whom the Bank has no direct interaction (with the prime holder of an individual account or one of the signatories of a non individual account) at the time of opening the account would require stricter documentation as per KYC policy.
Transactions conducted through correspondent relationship need to be managed taking a risk based approach. ‘Know Your Correspondent’ procedures should be established to ascertain whether the Correspondent Bank or counter party is itself regulated for money laundering prevention and , if so, whether the correspondent is required to verify the identity of their customers to FATF standards. Where the correspondent Bank does not follow FATF guidelines, additional due diligence should be exercised.
Bank must exercise due care at the time of opening fiduciary accounts opened by professional intermediaries.