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Interest shall
be paid in the manner indicated below :-
i)
In the event of payment of deposit being claimed before the maturity date, the bank may at
its discretion, pay interest at the rate applicable for the period for which the deposit has
run without charging any penalty for premature withdrawal.
ii)
ii)
In the event of deposit is claimed after the date of maturity, the Bank shall pay interest at
the contracted rate till the date of maturity. From the date of maturity till the date of payment,
the Bank shall pay simple interest at the applicable rate obtaining on the date of maturity, for
the period for which the deposit remained with the Bank beyond the date of maturity.
iii)
The splitting up of the amount of a term deposit/special term deposit and issue of two or more
receipts individually in the name of each of the joint account as also allowing splitting up of
joint deposits in the name of each of joint account holders only, shall not be construed as
pre-mature withdrawal, provided the period and aggregate amount of the deposit do not under
go any change. While acceding to the request for splitting up of a term deposit/special term
deposit receipt held in the names of two or more joint holders, they should be more circumspect
and should satisfy themselves that splitting up has been sought for genuine reasons and not to
avoid payment of penalty and loss of interest on entire amount of deposit and there is no attempt
to circumvent tax laws.
(B) Current Account Deposits :
In the case of balance lying in current account in the name of a deceased depositor interest
will be paid at the savings deposit rate till the balances are paid to the legal heirs.
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