Gurgaon Gramin Bank

OUR DEPOSIT SCHEMES

Saving Bank Account -- Guidelines

The existing guidelines for opening a Saving Bank account are as under:-

Introduction for opening a SB account-- An existing customer can introduce SB a/c who is having a account for last 6 months, a person well known to the bank or a staff member with satisfactory conduct.
Confirmation of address:- It is done in respect of all accounts on the basis of supporting documents such as ration card, photo identity card issued to the voters, driving licence or income tax Pan card etc.
Maintenance of minimum balance in Saving Bank account:
- SB account with Cheque Book -- minimum balance maintained is Rs.500/- and for non-maintenance of minimum balance penalty of Rs.15/- per month is levied.
- SB account without Cheque Book -- minimum balance maintained is Rs.100/- and for non-maintenance of minimum balance penalty of Rs.15/- per month is levied.
For issuing duplicate Pass book, charges is Rs.25/- per pass book with latest balance only + Rs.25/-per folio for previous entries.
Enquiry related to old records/entry in case of SB a/c, charges is Rs.5/- per entry subject to minimum Rs.25/- per occasion.
Stop payment charges - Rs.20/- per transaction.
Change in operational instructions -Rs.10/- per occasion.

Issue of certificate regarding balance confirmation, interest paid/collected etc.-Rs.20/- per occasion. (Branch may waive such charges to good depositors to retain deposits).

SUGAM DEPOSIT SCHEME

Sugam Deposit Scheme has been launched w.e.f. 01.12.96. The scheme envisages an ODD linked Time Deposit, which will facilitate availability of funds to the account holder without necessitating another visit to the branch. Following are the salient features of the scheme.

TYPE OF DEPOSIT--- Term deposit under re-investment plan in the form of cash certificate.
AMOUNT OF DEPOSIT-- RS 15000/- and above in multiples of Rs 1000/-.
PERIOD OF DEPOSIT--- minimum period of one year and a maximum of 3 years.
RATE OF INTEREST--- in force as per RBI Directive compounded quarterly.
AMOUNT OF OD LIMIT--- 80% of the face value of the deposit irrespective of any maximum limit will be sanctioned at branch level.
RATE OF INTEREST ON ODD---
- Interest @2% above the term deposit, for ODD limit upto Rs.2 lacs.
- Interest @3% above Term deposit rate with minimum of PLR to be charged at quarterly intervals for ODD limit exceeding Rs. 2 lacs.
DOCUMENTATION--- for the odd facility all formalities will be completed on the day of accepting the deposit itself and the depositor will be issued a cheque book with freedom
PREMATURE WITHDRAWAL—Premature withdrawals of the said deposits are permissible subject to the terms and conditions applicable to other term deposits.
9. The scheme is restricted to individuals (majors) only and not for minors, trust etc.

SUVIDHA DEPOSIT SCHEME

Suvidha deposit scheme has been launched w.e.f. 01.05.94. This scheme enables the depositors to withdraw a part of the fixed amount to tide over in times of financial stringency.

Amount to be deposited under this scheme is Rs.10000/- and above but in multiples of Rs.1000/-.
The deposit shall be kept for a minimum period of 46 days but not exceeding 10 years.
Interest is payable at half-yearly intervals, according to the rate applicable to deposits at the time of opening the account.
- In case of urgent need of funds, the depositor is at liberty to withdraw a portion of the amount deposited, in multiples of Rs.1000/-.
- The branch will record the withdrawal in the deposit ledger and also make an endorsement on the back of deposit receipt as under:-
  
  DATED
  
  AMOUNT WITHDRAWN
  
  SIGN. OF DEPOSITOR
  
  SIGNATURE OF MANAGER
- For the amount of deposits prematurely withdrawn, the Bank will pay interest at 1% less than the rate applicable for completed period.
- The remaining amount will earn interest at the original contracted rate.

The amount to be withdrawn in part under this scheme can be released through the Saving Bank Account of the party after taking a request letter from the depositor.

VIKAS CASH CERTIFICATE

Vikas Cash Certificate is an ideal scheme for those who wish to invest their savings for any period from 1 to 10 years and do not need interest at periodically intervals.

Vikas Cash Certificate are issued in multiples of Rs.100/-.
The Certificates are issued for terms ranging from 6 months to 10 years in complete years.
The scheme is for individuals, firms, Companies, Societies, & Associations etc. or also in the joint names of more than one individuals repayable to all of them jointly or No.1 or Survivor/s or either or survivor.
These certificates may be encashed before maturity subject to 7 days notice with interest at 1% less than the rate applicable to fix deposit for the period for which the deposit under the scheme was with the Bank and the interest is compound quarterly.

INTRODUCTION OF A NEW DEPOSIT SCHEME SENIOR CITIZENS’ SECURITY DEPOSIT (SCSD)

We have pleasure in informing our Branches/Extension Counters/Administrative Offices that we are launching a New Deposit Scheme under the name “SENIOR CITIZENS’ SECURITY DEPOSIT” (SCSD) w.e.f. 1.09.2001.

SAILENT FEATURES OF THE SCHEME:

1. ELIGIBLE PERSONS: The Deposit account can be opened by Senior Citizens and persons, who are above the age of 60 years. The age of the Senior Citizen shall be verified with reference to any of the following documents.

Secondary School leaving certificate indicating date of birth.
LIC Policy.
Voters Identity Card.
Pension Payment Order.
Birth Certificate issued by the Competent Authority.
Passport.
Any other Document acceptable to the Bank.

Once the age of the Senior Citizen is verified for accepting the deposits under the Scheme, the proof of age shall not be sought for renewal/ accepting subsequent deposits from such depositors.
2. AMOUNT OF DEPOSIT: Minimum amount to be deposited is Rs.1000/- and in multiples of Rs.1000/- above this amount.

3. PERIOD OF DEPOSIT: Branches shall not accept Term Deposit of less than 1 year under this scheme as minimum period of the deposit shall be 12 months and maximum shall be 120 months.

4. RATE OF INTEREST: Special Rate of interest at 0.75% above the rate of interest applicable to the domestic term deposits as on date of deposit subject to a maximum rate of interest for senior citizens is capped at 8.00%.

5. PAYMENT OF INTEREST: The interest on the deposit account can be paid at monthly (discounted) or quarterly rests as desired by the depositor.

6. DEPOSIT RECEIPT: Separate deposit receipts will be issued to the depositor for each deposit opened with the Bank.

7. PERMATURE REFUNDS: The deposit can be withdrawn prematurely. No penalty shall be levied for such premature refunds.

8. DEPOSITS IN JOINT NAMES: Senior Citizens depositors are entitled to all benefits under the scheme, in respect of joint deposits provided the name of the Senior Citizens is given as the first name in the application.

9. LOANS/OVERDRAFTS: The depositors can avail loan upto 75% of the deposit amounts or overdrafts as per rules of the Bank.

10. NOMINATION FACILITY: Nomination facility will be available for this scheme as in the case of other deposits.

11. ACCOUNTING PROCEDURE: The accounting procedure applicable to FD/SSD/VCC shall be applicable to this deposit scheme.

12. INCENTIVE TO THE DEPOSITORS:

a) The Depositors, under this scheme shall be exempted from maintaining minimum balance in their SB accounts

b) At par remittance facility upto Rs.5000/- per month or upto the monthly interest payable, which ever is higher will be permitted.

13. RETIRED STAFF MEMBERS: The special rate of 0.50% as above will not be applicable on such deposits of our Bank’s retired staff members where they have been permitted 1% additional interest over the prevailing domestic term deposit rates.

14. SETTLEMENT OF CLAIMS: Branches shall ensure prompt settlement of the claims to the nominees, in the event of death of the depositors.

15. TARGET GROUP: The target group is Senior Citizens and persons of the age of above 60 years. Branches shall obtain proof of age before opening the deposit accounts under this scheme and extending the incentives provided under this scheme.

MARKETTING THE PRODUCTS: Since Senior Citizens and persons of above 60 years are the important target groups, branches shall contact such persons and canvass deposits by explaining/highlighting salient features of the scheme.

REPORTING: Separate head of account in MR-I, GG-1, GG-24 and Balance Sheet shall be provided.

ROLE OF AREA MANAGERS: The Area Manager shall motivate the staff members to canvass deposits under the above scheme and suggest the specific strategies to be followed by the branches for popularising the above deposit scheme. Besides, Area Offices shall also review the progress made by the branches in implementing the above deposit scheme.

The branches shall maintain a separate register to account for deposits opened under this scheme and report the balance in the appropriate returns to the controlling offices periodically.

All the Branches/Extension Counters/Administrative offices are requested to give wide publicity to the scheme and convass substantial deposits under this scheme. All the employees are requested to actively involve themselves in popularising the scheme We are confident that the aforesaid scheme will be a success in our area of operation & will help us in mobilising deposits. We will also be able to serve Senior Citizens, particularly Defence Pensioners getting pension from our branches in a better way.

Financial inclusion -- Zero balance accounts in RRBs

As advised by RBI, Bank has to take a comprehensive review of the existing system and procedure relating to the captioned subject with a view to achieving the objective of greater financial inclusion, to make available a basic banking 'no-frills' account either with nil or very low minimum balances as well as charges that would make such accounts accessible to vast sections of population.

Branches/Extension Counter are hereby informed that in reference to the policy of Financial Inclusion -- Zero balance accounts in RRBs issued by RBI, we introduce new Saving Bank account scheme with the name of "Saral Saving Bank account" Scheme. The Salient features of "Saral Saving Bank Account" scheme are as follows: -

Eligibility: All person/s who are eligible to open a Savings Bank Account can open accounts under this scheme. (Associations/ Trusts/club/Socities etc. will not be eligible to open a Saving Bank Account under this scheme.)

Account may be opened with Zero balance.

Cheque book facility will be provided to the account holders under this scheme in case they maintain minimum balance as stipulated for normal SB accounts.

There will be no charges for non-maintenance of minimum balance.

Cheque Collection Charges:

Local cheques	No charges
Out station cheques	Upto cumulative of Rs.50000/- per year	Only actual postal expenses to be collected
Out station cheques	Above Rs. 50000/-per year	Normal charges

Cheque return charges: As applicable to Normal Saving Bank Account.

Remittance charges for DD/PO etc.: As applicable to Normal Savings Bank Account.

Closure of account: No service Charges to be levied.

Stipulated transactions under the scheme:

There will be no restrictions for cash receipts. However cash withdrawal will be allowed maximum 50 times per annum. In case, the customer exceeds the stipulated transaction from his account, Service charges of Rs.10/- per transaction shall be collected.

All other conditions/KYC/Anti Money Laundering norms applicable similar to Savings Bank Account will be applicable to accounts opened under this scheme.
The existing SB account opening forms shall be used for opening accounts under 'Saral Savings Bank Account" scheme.

All other conditions/KYC/Anti Money Laundering norms applicable similar to Savings Bank Account will be applicable to accounts opened under this scheme.

"Saral Saving Bank account" Scheme

Particulars	EXISTING	MODIFIED
Eligibility	All individual/s	All individual/s
Minimum balance	Rs.5/-	Zero Balance
Rate of interest	3.5 % at present	3.5 % at present
Cash withdrawal	2 withdrawal per month	50 per annum *
Cheque Book	Cheque book will be made available if balance is maintained as per the existing SB account norms.	Cheque book will be made available if balance is maintained as per the existing SB account norms. (No Change)
Non-Maintenance of minimum balance	No charges	No charges(zero balance permitted)
Cheque Collection charges	Local -- Free	Local -- Free
Cheque Collection charges	Outstation –No charges upto cumulative of Rs.25000/- per year (actual postal charges to be paid) Above Rs.25000/- per year –normal charges will be levied.	Outstation –No charges upto cumulative of Rs.50000/- per year (actual postal charges to be paid) Above Rs.50000/- per year –normal charges will be levied.

* Service charge of Rs.10/-per transaction shall be levied if the customer exceeds the stipulated number of transactions in his account.

Eligibility: All person/s who are eligible to open a Savings Bank Account can open accounts under this scheme. (Associations/ Trusts/club/Societies etc. will not be eligible to open a Saving Bank Account under this scheme.)

Account may be opened with Zero balance.

Cheque book facility will be provided to the account holders under this scheme in case they maintain minimum balance as stipulated for normal SB accounts.

There will be no charges for non-maintenance of minimum balance.

Cheque Collection Charges:

Local cheques	No charges
Out station cheques	Upto cumulative of Rs.50000/- per year	Only actual postal expenses to be collected
Out station cheques	Above Rs. 50000/-per year	Normal charges

Cheque return charges: As applicable to Normal Saving Bank Account.

Remittance charges for DD/PO etc.: As applicable to Normal Savings Bank Account.

Closure of account: No service Charges to be levied.

Stipulated transactions under the scheme:

All other conditions/KYC/Anti Money Laundering norms applicable similar to Savings Bank Account will be applicable to accounts opened under this scheme.

GGBTaxShield -- A TAX SAVING FIXED DEPOSIT

In the 2006-07 budget, the Government had proposed that investment in deposits of a fixed period of not less than five years in Banks will qualify for deduction of up to Rs.1 lakh in total Income, similar to savings schemes like NSC, PPF, Life Insurance premia and other investments. Under this scheme, an individual or a Hindu Undivided Family (HUF) can invest in term deposits of a Scheduled Bank up to Rs. 1 Lakh in a year. However, the investment in these term deposits, alongwith investments in other savings scheme will be eligible for the purpose of tax benefit under Sec.80C, subject to the overall ceiling of Rs.1 Lakh.

On the lines of the Union Government notification on Bank Term Deposit Scheme, 2006 for the purpose of Sec.80C (2) (xxi) of the Income Tax Act, “GGBTaxShield” has been launced w.e.f. 27.01.2007.

The salient features of “GGBTaxShield” are as follows:

GGBTaxShield -- “GGBTaxShield” is a Term Deposit Scheme with maturity of not less than 5 years subject to lock in period of 5 years.

Who can open the Account -
- An individual for himself
- Hindu undivided family ;
- Jointly by two adults or jointly by an adult and a minor, and payable to either of the holders or to the survivor :
In case of deposits in joint names, the benefit under section 80C of the Income Tax Act shall be available only to the first holder of the deposit.

Amount of Deposit - Minimum Rs.100/- and maximum Rs.1 lac in a year (1st April to 31st March).

Types of deposit that can be accepted: The deposit can be accepted in Fixed Deposit, VCC and SSD and interest will be payable half-yearly or quarterly or monthly or in Lump sum at the time of maturity, as the case may be.

Rate of interest – The scheme shall earn interest at the rate applicable to the tenor prescribed for the product.

Period of deposit and payment on maturity - The period of deposit under the scheme shall be not less than five years.

Rate of interest –Applicable as per guidelines in vogue. Senior Citizen & Staff will be eligible to get additional interest rate as per rules in vogue.

Special conditions for issue of deposit receipt: The Deposit under the scheme has to be in the prescribed form with the Fixed Deposit receipt bearing Permanent Account Number (PAN) and signature of the assessee along with the name and address of the account holder and other details. Branches shall incorporate these particulars in the fixed Deposit/Vikas Cash Certificates.

Income Tax Benefits - Deposit under the scheme is eligible for deduction under Section 80C of the Income Tax Act upto a maximum limit of Rs.1 lac (subject to the overall ceiling of Rs.1 lac alongwith other deductions already available under 80C).

Repayment of deposit: Deposit is repayable on or after maturity date in the normal course. Premature closure is not permitted till the deposit completes 5 years from the date of deposit.

Nomination facility- available

Loan against the deposit and Pledging of term deposit receipt - Not allowed. Branches shall affix the words “No Loan Facility Available” on the Fixed Deposit/Vikas Cash Certificates.

Issue of Duplicate Term Deposit Receipt - Duplicate receipts may be issued in accordance with the guidelines in this regard.

Applicability of Income Tax on Interest Income - Interest on these term deposits shall be liable to tax under the Income Tax Act.

Branches shall use the existing Account Opening application forms and FD/VCC receipts.

Branches shall report the figures of deposit under “GGBTaxShield” separately in GG-1, GG-24 and MR-I (P&D).

Balance Sheet code allotted is “1208”.

All other conditions/KYC/AML norms applicable similar to Savings Bank Account/FD/VCC shall apply to accounts opened under this scheme.