SAVINGS BANK ACCOUNTS

(Instructions relating to the formalities to be observed for opening of an account,

operations in an account and other matters relating to maintenance, common for savings

accounts have been given in the master circular on General Instructions- Deposit

Constituents accounts)

The additional guidelines relating to Savings Bank accounts are provided in this

annexure. The guidelines contained herein must be read together with the guidelines in

master circular on General instructions relating to deposit constituents accounts.

1. Savings Bank account is a form of demand deposit account, opened mainly for the

purpose of saving and not for any business purpose, subject to restrictions on the

number of withdrawals during any specified period. Number of withdrawals in a

savings bank account permitted is fifty per half year in a financial year. For accounts

opened in the middle of the half year permissible withdrawals will be calculated

prorata. If the numbers of withdrawals exceed the permitted limit, a service charge

as advised from time to time will be levied.

2. OPENING OF ACCOUNTS

2.1. SAVINGS BANK ACCOUNTS MAY BE OPENED IN THE NAMES OF

Individualssingle accounts, or joint accounts of two or more individuals.

minors by themselves or on behalf of the minors by their guardians

Following entities

a. Primary Co-operative Credit Society which is being financed by the

bank.

b. Khadi and Village Industries Board

c. Agriculture Produce Market Committee

d. Societies registered under Societies Registration Act, 1860 or any other

corresponding Law in force in the state or Union Territory.

e. Companies Governed by the Companies Act 1956 which have been licensed by

the Central Government under section 25 of the Act, or under the corresponding

provisions in the Indian Companies Act 1913 and permitted, not to add to their names the word "Limited or the words "Private Limited"

f. Institutions other than those mentioned in para (2.1.) above and whose entire

income is exempt from payment of income tax under Income Tax Act, 1961.

g. Government departments/bodies/agencies in respect of grants/subsidies released

for implementation of various programmes/schemes sponsored by Central

Government/State Governments subject to production of an authorisation from

the respective Central/State Government departments to open savings bank account.

h. Development of women and children in rural areas (DWCRA).

i. Self-help Groups (SHGs) registered or unregistered, which are engaged in

promoting savings habits among their members.

j. Farmers' Clubs - Vikas Volunteer Vahini. (V V V)

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2.1.1 Branches shall not open Savings Bank account in the name of the following:

a. Any trading or business concern, whether such concern is proprietorship,

partnership, company or association.

b. Government departments/bodies depending upon budgetary allocations for

performance of their functions.

c. Municipal Corporations/Committees

d. Panchayat Samities

e. State Housing Boards

f. Industrial Development Authorities

g. State Electricity Boards

h. Water / Sewerage / Drainage Boards

i. State Text Book publishing corporations / societies

j. Metropolitan Development Authorities

k. State / District level housing Co-operative Societies.

l. Other banks including Regional Rural Banks, Co-operative Banks and land

Development Banks.

m. Political parties

2.2. Any other institution permitted by Reserve Bank of India from time to time, can be

allowed to open Savings Bank Accounts.

2.3. If the branch is approached by any other institution not covered under 2.1 above,

and which are specifically charged with the task of rendering social or economic

assistance to, or welfare of, the weaker and under-privileged sections of the society,

the branch shall, for opening savings bank accounts for them, make a

formal application through their Regional office, to the Regional Office of

the Department of Banking Operations and Development, Reserve Bank of

India within whose jurisdiction the Registered Office of the beneficiary organization

is situated. The branch shall furnish full particulars of the institution, including copies

of the Memorandum and Articles of Association, bye-laws, nature of activities,

published accounts, such as balance sheet, profit and loss account or income and

expenditure statements, the manner of distribution of surplus funds etc., to enable

the Reserve Bank of India to decide whether specific exemption can be granted in its

favour or not. The branch can open such accounts as savings account only

after specific permission is received from Reserve Bank of India.

2.4. Acceptance of Interest free deposits in Savings Bank is prohibited irrespective of

caste, creed or religion of the depositor.

2.5. Branches are permitted to open Savings Bank accounts for the following special

categories of depositors, subject to the guidelines contained in the relevant

paragraphs in the master circular on General Instructions on Deposit Constituents

accounts, also for operations thereon .

a) Minors represented by guardians

b) Minors above age ten

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c) Blind persons

d) Illiterates

e) Purdhanashin ladies

f) Trusts.

2.6. First Line Managers may permit depositors to have more than one Savings Bank

Account in their own names or jointly with other persons or as guardians on behalf of

minors.

2.7 Introduction of Accounts

Where the applicant for a SB Account submits sufficient proof of identity and

address as prescribed in KYC-AML Policy of our bank and the branch is with the

bonafides of the applicant and as a respectable person, with such proof of identity

and address, branch may open the account without insisting on an introduction by

an existing account holder. However a Letter of Thanks to the depositor should be

sent as envisaged in the master circular on General Instructions on Deposit

Constituents Accounts. Branch should be in a position to classify such account

holders under Low risk-RIP I under KYC Norms / AML Standards.

With the exception of the above, and No frills Accounts all other Accounts should

be introduced as guided in the master circular on General Instructions on Deposit

Constituents Accounts.

3. MAINTENANCE OF ACCOUNTS

Guidelines in respect of obtaining the appropriate account opening form, specimen

signature sheets and their maintenance and the method of opening the accounts are

provided in master circular on General Instructions on Deposit Constituents accounts

In addition branches should follow the guidelines contained in the following paragraphs.

3.1. Application to open a Savings Bank Account should be made on

TYPE OF ACCOUNT SAVINGS BANK FORM NO

1. Savings Bank Account

Opening Form

10 ( revised & 303X

for HUF Accounts

2. Savings Bank Account

Opening Form for

(a) Minors Accounts operated by a

Guardian 10 A

(b) Societies, Clubs etc. 511

(c) Non Residents in the form of Non

Resident (External) Accounts

523

(d) Trusts 551

(e) Accounts under Capital Gains

Accounts Scheme, 1988 FORM A

Central office is in the process of revising the account opening forms, when advised

so branches should obtain the new application forms.

3.2. On receipt of the account opening form and specimen signature sheet duly filled in,

along with the KYC CROP form and documentary evidence there on for customer

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acceptance Policy and Customer Identification Procedure, the opening of the account

must be authorised by the Branch Manager or by the department officer as

authorized by the Branch Manager. Such authorisation will be made after

interviewing the applicant and verifying the particulars furnished. In case the

department officer had authorised the opening of the account, at the end of the day

the Branch Manager should approve of the same. The account can then be opened

in the computer system, with the operator inputting the details in the master and the

supervising staff approving the same. In the computer system, next serial number as

generated by the System or a Fancy number as requested by the customer can be

allotted. The Customer ID and the account number should be entered on the account

opening form, specimen Signature sheets and KYC- Crop form. The account opening

details then should be entered in the Savings Bank account opened and closed

register (format given below). The account number should also be entered in the pay

in slip and also advised to the customer. The entries made in the register should be

verified and initialed by the Officer of the department. Whenever there is an

inadequacy in the Account Opening Form or Specimen Signature sheets, the clerical

staff (operator) must assist the departmental officer in arranging to rectify the

inadequacies without loss of time. The clerical staff (operator) must make a note of

such inadequacies in the remarks column of the Account Opened and Closed

Register. The Register should be put up to the Branch Manager every day for his

counter initials. The Manager/Deputy Manager/Department Officer must also

regularly examine such remarks to ensure that steps are initiated to eliminate the

inadequacies observed at the earliest.

The first line Manager or the authorized officer should go through the KYC Crop form

and categorise the applicant on risk as Low Risk- RIP one , Medium risk RIP 2,

High Risk RIP 3 , Exceptionally High risk RIP 4 and enter the Risk Level threshold

limit applicable to the account in the KYC form & the account opening form . Branch

should also enter the same in computer system.

Branches should bear in mind that transactions in the accounts of Medium , High

Risk and Exceptionally High risk category accounts need close monitoring as per KYC Norms / AML Standards.

REGISTER OF ACCOUNTS OPENED AND CLOSED

DATE NAME OF THE CONSTITUENT

NUMBER OF A/C OPENED

NUMBER

OF A/c CLOSED

REASONS

FOR CLOSING

TOTAL

NUMBER OF A/Cs.

INITIALS REMARKS @

1 2 3 4 5 6 7 8

@ In the remarks column, details like Transferred from ___________ branch can be

recorded where the account has been transferred from another branch.

2.5. For all the above accounts, excepting Minors Special Savings accounts, branches

should obtain the nomination as per procedure and record in the computer

system. For the procedure on nominations branches are to refer to the master

circular on Nominations and claim settlements and Book of Instructions.

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3.6. MINIMUM BALANCE AND CHARGES FOR NON MAINTENANCE OF MINIMUM BALANCES

Category With cheque

facility

Without cheque

facility

Penalty for non

maintenance

Rural & Semi urban

branches

Rs. 500/- Rs. 100/- Rs.7 per month

Other branches Rs.1000/- Rs.500/- Rs.14 per month

Pensioners SB account Rs.250/- Rs.5/- As above based on

the category

3.6.1. In case of default in maintaining minimum balance, branch should initiate the

following action:

(a) the Account need not be closed for want of minimum balance.

(b) Cheques should not be returned if sufficient funds are available for passing a

cheque, even though the balance goes below the minimum required. The

condition of the account should be brought to the notice of the customer in

writing, which should be of persuasive nature.

(c) Branch should send letters to the customers stressing the need for

maintaining minimum balance.

(d) After issuing a Registered Notice, Branch should stop issuing cheque books to

the customers if the balance goes below the minimum required six times in a

quarter.

(e) Branches should charge penalty for default in maintaining minimum balance

required for Savings Bank Accounts, as above

Branches should note that no overdraft should be created by debiting the penalty amount.

If there is insufficient balance, proper record of such accounts should be maintained and

the penalty debited or recovered as and when there is sufficient balance. Branches should

display the minimum balance requirements and charges there on in the branch notice

board prominently.

Along with Account opening form branches should obtain ATM application form and

Application form for E- see banking ( internet banking ) and load the details in the

computer system as prescribed by IT dept. This would enable our customers use the ATM

and also that of other banks at various locations across the Country. Branches should

also explain the advantages of net banking to the customer. Branches also can obtain the

request from customers for availing the mobile phone alerts and then feed the mobile

number in the appropriate module in the computer system. These facilities are available

only for networked branches.

3.8. The passbook should be branded with the rubber stamp reading NOMINATION

REGISTERED. The details of the nominee should also be entered in the computer

master through appropriate programme.

3.9. The pass book should be handed over to the depositor after the amount of initial

deposit has been credited to the account and entered in the pass book under the

initials of the officer-in-charge of the department/a Supervising Official after he/she

verifies the correctness of the entry in the pass book with that in the computer page.

3.10. Branches should also cross sell our IOB-Jeevan group insurance policy and IOB

Healthcare plus to the new customers highlighting to them that these products are

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for their welfare. Branches should also get a request letter from the customers for

debiting the lowest insurance premium of Rs.10/- in the account to cover accident

insurance for one year. Branches should note that these are value additions to our

existing customers as well as prospective customers.

3.11 Initial remittance

As a measure of abundant precaution, it is better to open an account with an initial cash

remittance. However, there is no bar for opening accounts with the proceeds of bank

drafts payable to the applicant to the account or his self cheque on another bank provided

the introduction is acceptable. In the case of salary accounts, branches may even

consider opening the account with zero balance.

4.1. PRECAUTIONS IN THE OPERATIONS OF NEWLY OPENED ACCOUNTS

Branches should refer to the master circular on general instructions relating to deposit

constituents accounts on the precautions in the operations of newly opened accounts.

To facilitate this, the computer system will flash the warning New account up to six

months to invite the attention of the operators and the supervising staff whenever they do a posting or passing in the relevant accounts.

4.2. OPERATIONS IN THE ACCOUNTS

Branches should refer to the master circular on general instructions for detailed

guidelines on the operations in the accounts.

4.2.1. Subsequent to opening the account a depositor may remit any amount in his

account. All deposits to Savings Bank Account should be accompanied by pay-in-

slips. Separate pay-in-slips should be used for cash and cheques. All Cash

Deposits in Savings Accounts of Rs.50,000/= and above will require the

account holder furnishing the Income-tax PAN or declaration in Form 60

or 61 as the case may be.

4.2.2. Cheques, drafts, dividend warrants and other instruments should be accepted for

credit of savings bank accounts only if they are drawn payable to the depositor.

4.2.3. However, branches may accept interest warrants issued in the name of the first

purchaser of Public Sector bonds and endorsed in the name of the second

purchaser, and presented for collection by the second purchaser for collection in

his/her/their savings bank accounts.

For this purpose, branches should brand the respective savings bank Challans

accompanying the interest warrants, with a rubber stamp containing the following

declaration :

I/WE, DECLARE THAT I/WE, AM/ARE, THE HOLDER-IN-DUE COURSE AND

FOR VALUE WITHIN MENTIONED INTEREST WARRANTS TENDERED TO YOU

FOR COLLECTION

The branch should invariably ensure that such declaration is signed by the depositor

before accepting the interest warrants for collection in Savings Bank accounts.

4.2.4. Withdrawals are permitted either by cheques issued to the customers or by

withdrawal forms provided by the bank.

4.2.5. Branches should educate the Savings Bank customers to avail of the Teller service,

wherever provided, for payment of Savings Bank cheques/ withdrawal slips, for

amounts not exceeding Rupees Fifteen thousand only. Savings Bank Customers

may also be permitted to avail of the Teller facility for remitting cash not exceeding

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Rupees Fifteen thousand only per day per account for deposit into their Savings

Bank accounts.

4.2.6 Branches should encourage savings bank customers to avail Visa Debit card cum

ATM card, so as to reduce the pressure on counters within the bank. This is also a

selling point for the branches to canvass more and more salary accounts of

companies.

4.2.7. Branch supervising staff, as allocated by the Branch Manager should check the

supplementary output every day as detailed in the master circular on general

instructions.

In a computerized environment, supplementary checking is akin to ledger checking

and such checking alone will bring out any unauthorized postings or will enable the

branch to know on the transactions carried out by a FBS facilitator branch.

5. ACCOUNTING FOR WRONG ENTRIES

Whenever a customers account has been wrongly credited with the amount meant for

another customers account, or a customers account debited with a debit voucher

intended for another customers account, the wrong credit or debit must be reversed

immediately upon finding out the error, and both customers advised immediately.

Where the recovery of a wrong credit or effect of a debit which was omitted to be debited

earlier results in an overdraft in an account, the customer must be informed immediately

by a letter as per format provided in the master circular on general instructions be sent

by Registered Post with acknowledgement due and the adjustment of the overdraft must

be pursued expeditiously.

6. CUSTODY OF WITHDRAWAL FORMS

6.1. When a customer comes to the Bank for making a withdrawal, the Savings Bank

counter clerk (operator) may hand over a withdrawal slip to the customer for his

immediate use from the stock kept on the counter top for the ready use of

customers. Additional withdrawal slips not exceeding ten leaves at a time may be

given to such of those customers who do not have cheque books, for the purpose of

drawing cash through third parties. In such a case the savings bank clerk(operator)

should note the account number in all the withdrawal slips before parting with the

same.

7. PAYMENT OF WITHDRAWAL FORMS

7.1. Withdrawal slips, as a general rule, should not be paid unless accompanied by

passbook. Withdrawal slips have been printed with the following clause pass book

must accompany this order form. Insistence of pass book while withdrawal slips

are presented over the counter for payment will serve as a definite check against

funds being withdrawn by unauthorised persons. The concerned member of staff

(passing supervising staff) will be personally liable for any loss that may be incurred

on account of their negligence in not insisting upon the pass book. Where withdrawal

slips are presented without production of the pass book, the Manager/Senior

Manager/Deputy Manager or the supervising official in charge of the department may

authorise the payment provided they are thoroughly satisfied that such withdrawal

slips are presented by the account holder himself or some one whose identity is well

known to them.

7.2. Payment out of Savings Bank account to third parties through withdrawal slips may

be allowed up to a maximum amount of Rupees One thousand only per instrument.

For this purpose withdrawal slips have been printed with the following clause:

Payment to other than the account holders, restricted to Rupees One thousand only.

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8. RECEIPT, CUSTODY AND ISSUE OF CHEQUE BOOKS

Issue and custody of Savings Bank cheques should be on the guidelines as detailed in the

master circular on general instructions.

In terms of guidelines from IBA adopted by our Bank, branch should adhere to the

following instructions whenever a customer requests for more than one cheque book at a

time:

(i) Branches should avoid issue of more than one cheque book at a time to Savings

Bank customers.

(ii) In the case of Savings Bank customers needing excessive number of cheques to

be drawn, branches should persuade them to open Current Accounts.

(iii) However if the branch is convinced about the genuineness of the customers

request for more than one cheque book at a time, a report with specific

recommendation should be submitted to Regional Office for approval.

Regional Office shall consider such Reports on the merits of each case and accord

permission or decline the request without loss of time.

(iv) Branches are advised to educate the constituents in this regard and guard against

any complaint.

9. PAYMENT OF CHEQUES

Detailed guidelines have been given in the master circular on General instructions

on the payment of cheques. cash- transfer- inward clearing. Branches are to refer to

the same.

10. PASS BOOKS AND CONFIRMATION OF BALANCES

The entries in a pass book duly initialed by the ledger-keeper (operator) must be

authenticated with the initials of the Supervising Official only after he/she has verified

them with the corresponding entries in the ledger report display in the computer system

and verifying the relative vouchers of the day in respect of unchecked entries. Computer

generated Statement of Accounts issued to the customers should be signed by Authorised

supervising staff after affixing branch rubber stamp.

Branches are to refer to the master circular on general instructions on the

issue of Passbook, issue of duplicate passbook and custody of passbooks until making up the entries on the same.

Confirmation of balances in Form F.237A should be obtained as on the last day of

September every year wherever, the accounts show a debit balance,

11.HANDLING OF STOP PAYMENT INSTRUCTIONS

Branches should adhere to guidelines contained in the master circular on general

instructions

12. STANDING INSTRUCTIONS

Savings Bank customers may give standing instructions to the branch for making

remittances of funds periodically from their accounts. Branches should be guided by the

guidelines given in master circular on general instructions for acceptance, recording

and carrying out the Standing Instructions. Branches should note that prompt execution

of standing instructions will enhance customer satisfaction and also a sensitive area for complaints.

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13. INTEREST CALCULATION, MONTHLY PROVISION AND PAYMENT OF

INTEREST

13.1. Interest at the rates specified by Reserve Bank of India from time to time shall be

paid on the balances in Savings Bank Accounts.

13.2. Interest on Savings Bank accounts is payable half yearly.

13.3. For the purpose of providing monthly interest on Savings Balances branches should

calculate interest on the aggregate balance arrived at as under:

General Ledger Balance as on the 10th of each month Rs...............

LESS Total of withdrawals (debits) from 11th to the

last day of the month Rs...............

Reminder on which monthly interest will be calculated Rs...............

The interest so calculated should be debited to Branch Profit and Loss Account Interest

Paid on Deposits Account and credited to Interest Accrued Account.

13.4. Actual interest on individual savings bank accounts should be calculated for the six

months period viz.(i) from First day of February to the last day of July and (ii) from

First day of August to end of January.

13.5. The interest on individual accounts should be credited to the respective accounts

during the first week of August for the six months ending 31st July and during the

first week of February for the six months ending 31st January.

13.6. For the purpose of calculation of interest, the lowest clear balance at credit in an

account between the tenth day and the last day of each month is computed as

products by the system. At the end of each half year, the monthly products is

totaled and divided by six to arrive at the average monthly balance in the account.

Interest should be calculated on the average balance at the prevalent rate of

interest for savings bank accounts.

13.7. No interest should be paid unless the interest accrued during the half year amounts

to atleast Rupee One.

13.8. A supervising official should check in the interest calculations by the computer

system random. From the interest posted printout he should also ensure that all

the accounts have been credited with interest except as contained in para 13.7.

The total interest paid on all accounts will be listed and debited to Interest

Accrued Account. While providing the interest as calculated by the computer

system , the branch should ensure that the outstanding in Interest Accrued

account contains only the current month provision. As the system is programmed

to do the vouching for the current month provision, branches need to check up that

at a particular month the interest provision is properly held, by taking average

balance of GL and working out for the number of months the provision is held in

Interest accrued account.

13.9. At the time of closure of account, interest should be applied by debit to Interest

Accrued Account and the ultimate balance paid to the depositor against his

cheque or withdrawal form in the usual manner.

13.10. In the case of accounts opened after tenth day of a month, interest will be payable

only from the subsequent month.

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14. BALANCING OF LEDGERS

14.1. Branches to ensure that at the time of day end, the master balance and GL

balances agree. If the same does not agree and shows a difference, branches

should note down both the balances and the difference and take up with their RCC

/ I T dept , Central office through the complaints procedure and rectify the same.

15. OVERDRAFTS IN SAVINGS BANK ACCOUNTS

15.1. Though savings bank accounts are primarily meant for promoting savings, branches

may face situations where cheques issued by otherwise regular savings bank

customers being presented without adequate balance. In order to accommodate

such customers in exceptional cases branches may permit limited temporary

overdrafts in savings bank accounts subject to the stipulations prescribed by

Central Office from time to time.

15.2. branches should strictly adhere to the following stipulations whenever such a need

arises. Any overdraft can be granted only against the specific written

request of the customer and with suitable documentation (DPN, F.16 & Credit

cum opinion sheet by the Manager ).

a) The customer must be having a satisfactorily maintained Savings Bank Account

with the branch for not less than six months.

b) He/She must be a confirmed employee in a Government / Semi-Government /

Quasi Government department or Organisation/Public Sector or Private Sector Organisation of repute.

c) He / She should have a stable income with reasonable prospects of its

continuance in the near future.

d) Members of the staff and their close relatives (Father, Mother, Brother,

Sister, Children and In-laws) are not eligible for this facility.

e) The salary of the customer must preferably be routed through his/her savings bank account with the branch.

f) The amount of overdraft should not exceed one months net salary as credited

to the customers account with the branch or the discretionary power of the

branch for granting temporary overdrafts, whichever is less.

g) The overdraft must be adjusted within one month from the date of its

availment.

h) If the customer desires to have the overdraft facility on a regular basis, he/she

must be advised to open a Current Account and a temporary Overdraft facility may be considered as per the existing rules and procedures.

i) Interest should be charged at the rate applicable for temporary overdrafts and

recovered at the end of the month.

j) Each debit which creates or acts to increase an overdraft must be referred to

the Branch Manager in the Cheques Referred Register. The overdraft can be

given only when authorised by the Branch Manager or in his absence by the

second line Manager..

k) Immediately on the occurrence of an overdraft, the branch should write to the

customer, advising him/her about the same and request him/her to adjust the

same at the earliest. A model letter is appended below.

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INDIAN OVERSEAS BANK PLACE

DATE

................................. Branch

To

____________________________

____________________________

____________________________

Dear Sir/Madam,

OVERDRAFT IN YOUR SAVINGS BANK

ACCOUNT NO ___________________

We have today paid your cheque No__________ dated________ favouring

__________________ for Rs._____________ (Rupees__________________________

only), thereby resulting in your account being overdrawn to the extent of Rs._______

(Rupees_____________________________ only) Kindly acknowledge and provide funds

to clear the overdraft at an early date.

Thanking and assuring you of our best services at all times,

Yours faithfully,

Manager/Chief Manager

**********************************************************************

15.3. Balancing and Accounting of Overdrafts in Savings Bank

The balance in the overdrawn accounts must be extracted in the Temporary Overdraft

report everyday and checked by the supervising official in charge of the Savings Bank

department and placed before the Deputy Manager and the Branch Manager for

information and confirmation.

The overdraft in Savings Bank should be incorporated in the General Ledger under

Overdraft in Savings Bank - Code No. 4123 on the Asset side.

15.4 REPORTING OF OVERDRAFTS IN SAVINGS BANK ACCOUNTS

Overdrafts granted in Savings Bank accounts must be reported individually on a monthly

basis in CAF-3 under Personal Overdraft Scheme.

Accounts not adjusted and outstanding beyond sixty days from the date of granting

should be treated as irregular and reported to Regional Office in ERI.

Overdrafts under personal overdraft scheme should not be extended at the extension counters

16. Value additions (concessions) in savings accounts

Savings Bank Accounts where an average quarterly balance of Rs. Ten thousand only and

above was continuously maintained during the previous quarter are eligible for the

following concessions in the current quarter.

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a. Inland Demand Drafts and/or Mail Transfers for two occasions in a month for a total

amount of DD and /or MT put together not exceeding Rs.10,000/= are totally

exempted from Exchange / Commission charges.

b. Collection charges would not be levied on outstation instruments such as Cheques,

Demand Drafts, Dividend Warrant, Interest Warrant, Refund Order etc., (excluding

Documentary / Clean Bills, Hundies, Supply Bills). The total amount of instruments

collected during a month for which no service charges are recovered should not exceed

Rs.10,000/=. However there is no restriction on the number of instruments collected

per month. The actual postal charges incurred for collecting the instruments would be

collected from the depositor. If the instruments are requested to be sent to our STAR

Centres (speed collection) then usual service charges would be levied.

17. DORMANT/IN-OPERATIVE ACCOUNTS AND UNCLAIMED BALANCES

Branches are to refer to master circular on General instructions

18. UNDESIRABLE ACCOUNTS

Branches are to refer to master circular on General Instructions .

19. TRANSFER/CLOSURE OF ACCOUNTS

Branches should be guided by the guidelines contained in master circular on

General instructions on Deposit constituents accounts for transfer of accounts from

one branch to another of our Bank and closure of accounts.

19.1. In the case of Savings Bank Accounts, interest up to the end of the previous month

should be calculated and credited to the Account by the transferor branch. For the

current month, if the account is transferred after tenth day of the month, the

lowest balance in the Account during the month of transfer should be mentioned

separately in the Transfer Form (Form 577) itself, to enable the transferee branch

to provide interest to the transferred Account for the month of transfer.

19.2 Similarly interest should be calculated and credited to the account before closure of

the account.

20. NO Frills Accounts

20.1. No Frills accounts are part of RBIs efforts to bring in to the banking fold, the financially or socially disadvantaged persons through financial inclusion. The bank

has introduced a simplified account opening form for such accounts. Criteria for such accounts is listed below

Sl.

no

Features Description

1 Type of account and GL code NO Frills S B Account. G L code 1212

2 Branches where account can be

opened

All Rural, Semi Urban, Urban and

Metropolitan branches.

3 Who can open the account Individuals including minor who have

completed 10 years of age and pensioners.

Joint accounts are permitted.

4 Introduction for opening the

account

Introduction from an account holder who has

been subjected to full KYC procedures. The

Introducers account with the bank should be

atleast 6 months old and should have

satisfactory operations.

Alternatively Branch can accept certificate

from VAO / Voter Identity card / Ration Card

/ Driving licence / PAN Card ( if available ) /

Passport ( if available) as a proof of identity

and address and open the account on the

strength of it.

5 Minimum balance Rs. Five.

6 Penalty for non maintenance of

Minimum balance

NIL

7 Withdrawals in the account Only by withdrawal slips. Cheque book will

not be issued.

8 Restriction of number of

transactions

25 transactions per half year ending March

and September

9 Penalty for exceeding the

number of transactions

No interest is payable

10 Restriction on amount of

transaction

10.a In order to enjoy No Frills status ,

the balance in the account should not exceed

Rs.50000/- at any point of time or Total

credit in the account should not exceed

Rs.100,000/- in the financial year.

10.b. When either of the limits stipulated as

above is exceeded, the No Frills

status of that particular account should

be withdrawn. Instead such account

should be treated as regular S B

account which entails application of full

KYC Procedures put in place by our

bank.

10. c. In the case of ( b) above, branch

should allow further operation only

after completion of application of full

KYC procedures.

10. d . It is the responsibility of the branch

to closely monitor the operation in

No Frills SB accounts and identify

those accounts which reached a

balance of Rs.40,000/- or total credit

of Rs.100,000/- from time to time

and prepare for the application of full

KYC procedures in co-ordination with

the account holder.

11 Interest payable Interest rate applicable to regular SB

accounts and method of calculation is the

same . ( presently 3.5% p.a )

12 Value addition / Concession 12.i. When the quarterly average balance of

Rs.10000/- and above was continuously

maintained during the previous quarter.

a. Inland Demand Drafts and / or mail

transfers for two occasions in a month for a

total amount of DD and / or MT put

together not exceeding Rs.10000/- are

totally exempted from exchange /

commission charges

b. Collection charges would not be levied on outstation instruments such as cheques,

demand drafts, dividend warrant, interest

warrant, refund order etc., (excluding

Documentary / clean bills , hundies,

supply bills) . The total amount of

instruments collected during a month for

which no service charges are recovered

should not exceed Rs.10000/-. However

there is no restriction on the number of

instruments collected per month. The

actual postal charges incurred for

collecting the instruments would be collected.

If the instruments are required to be sent

to our STAR centres ( speed collection )

then usual service charges would be

levied.

12. 2. No other value additions are allowed

in the account.

12.3 ATM cards are not be issued

12.4 Collection of instruments and issue of

DD / MT should be levied with regular

service charges (Other than those

mentioned in 12.1 )

20.2 Branches are aware that the Applicants/Accountholders of No Frills SB Accounts may

not be well informed / too literate to understand the nuances of banking and their

plight can effectively be addressed only through personalised counselling by the

operational staff. This exercise needs to be carried-on on an on-going basis by the

workforce who should continue to display perseverance, patience and empathy

towards the population who are yet to get access to the banking-services.

20.3. These accounts should be subjected to application of full KYC procedures as and

when loans are sanctioned to the accountholders of No Frills SB accounts, other

than through financial inclusion.

20.4 Photographs of the applicants affixed in the account opening form should be

attested by the introducer ( if introduction is available )

20.5 The terms and conditions of the No Frills accounts should be explained to the

applicants , preferably in the local Regional Language.

:15:

21. Special products : IOB- SB Silver and IOB-SB Gold

21.1 IOB-SB Silver

1. Name of the scheme : 'IOB- SB Silver'

2. Target group: Individuals including those employed in reputed companies, among

Software, Public /Private sector, Govt.

3. Type of deposits: Savings Bank account.

4. Minimum balance requirement: While opening the account, the account can be

opened with '0' balance. The account provides certain concessions and in order to

be eligible for the concession, average daily balance in the account during the last

three months should not be less than Rs.5, 000.

5. Special features / concessions

a. ATM cards on day one

b. International Debit Card without charges.

c. Internet banking (E see banking).

d. Monthly account statements over E-mail

e. SMS alerts for daily transactions.

f. Transfer of funds through NEFT free of cost

g. Personal Accident insurance cover of Rs. one lakh free of cost.

h. Anywhere Banking in CBS/TBA branches.

i. ATM usage at any Bank free.

j. RTGS free of charges.

k. Online Tax payment facility.

l. Overdraft facility up to one-month salary in case of salary earners.

m. Utility Bill payment facility Rent/school fees/college fees/ donations/ IOB

credit card bills/utility bills/ Telephone bills

n. Facility for family Health Insurance IOB-healthcare Plus.

o. PAN / TAN facilitation.

p. Facility for automatic transfer of balance in SB to Term Deposit If the

quarterly average balance is Rs.25000/- and above, this facility is offered.

Wherein the balance exceeding Rs.35000/- will be swept out in units of

Rs.2000/-and kept in TD.

21. 2 IOB-SB Gold

1. Name of the scheme: IOB- SB GOLD "

2. Target group: All individuals including professionals such as doctors, Lawyers, CA.s,

Executives working in MNC, Software Companies, Public/ private sector and business

people, High Net Worth individuals, CEOs, IAS and IPS.

3. Type of deposits: Savings Bank account.

:16:

4. Minimum balance requirement: The average daily balance over the last three months

should not be less than Rs.50000.

a. If the quarterly average balance is between Rs 50000 and less than Rs

100000, the balance exceeding Rs 65000 will be swept out and kept in TD.

b. Similarly, if the quarterly average balance is Rs. 100000 and above, the

balance exceeding Rs125000 will swept out and kept in TD. The

customers of this category are also eligible for Online equity trading facility and

Overseas Travel card free of charge.

5. Special features / concessions

a. ATM cards on day one

b. International Debit Card without charges.

c. Internet banking (E see banking).

d. Personalised Multi city cheques issued at MICR centres free.

e. Monthly account statements over E-mail

f. SMS alerts for daily transactions.

g. Transfer of funds through RTGS without charges.

h. Transfer of funds through NEFT without charges

i. Facility for automatic transfer of balance over a prescribed limit of Rs.50, 000 in SB

account to term deposit account and retransfer to SB ( Liquideposit facility).

j. Personalised cheque books with name printed free of cost.

k. Personal Accident insurance covers of Rs. five lakhs free of cost.

l. Anywhere Banking in CBS/TBA branches.

m. Preferential rate for gold coins.

n. ATM usage at any Bank free

o. Demat account opening charges free

p. Online Tax payment free of charge.

q. Online Bill payment facility Rent/school fees/college fees/ donations/ IOB credit

card bills/utility bills/ Telephone bills

r. Facility for family Health Insurance IOB-healthcare Plus.

s. PAN / TAN facilitation

21.3 For operational convenience for providing liquideposit facility, the SB special

products are grouped in the system as below:

IOB-SB Silver I : Quarterly average balance between Rs. 5000 and less than Rs.25000

are not eligible for liquideposit facility.

IOB-SB Silver II : Quarterly average balance of Rs 25000 and above. If the

quarterly average balance is Rs.25000/- and above,

liquideposit facility is offered. Wherein the balance exceeding

Rs.35000/- will be swept out in units of Rs.2000/-and

kept in TD.

:17:

IOB-SB Gold I : Quarterly average balance between Rs 50000 and less than

Rs 100000: If the quarterly average balance is between

Rs 50000 and less than Rs.100000, the balance exceeding

Rs 65000 will be swept out and kept in TD.

IOB-SB Gold II: Quarterly average balance of Rs 100000 and above. If the

quarterly average balance is Rs. 100000 and above, the

balance exceeding Rs125000 will swept out and kept in

TD. The customers of this category are also eligible for Online

equity trading facility and Overseas Travel card free of charge.

21.4 Liquideposit Scheme

A facility provided for special SB/CD customers. This facility combines the advantages of

both SB. and Term Deposits giving liquidity as well as higher return on investment. The

balances in the SB. account over a specified limit are automatically transferred to Term

Deposit and back when required by the depositor.

1 Target Group

All resident individuals in their individual names or joint names can open SB account.

But, first named constituent alone is taken for the purpose of ascertaining the

deposits, interest rate, TDS etc. Certain bodies or Organisations who are eligible for

opening SB. accounts are also eligible to open this account. NRE SB is excluded

from Liquideposit scheme.

2. Opening of Account

Apart from fulfilling the formalities for opening SB. account, an undertaking letter

agreeing to the conditions of "Liquideposit" should also be taken as per Annexure II.

3. Minimum balance in SB account

Minimum balance of Rs. 25,000 is required for availing liquideposit facility.

4. Transfer to Term Deposit Account

The balances in the SB. account over a threshold limit of Rs.35,000/- for SB-Silver -II,

Rs 65000 for SB-Gold-I and Rs.100000 for SB-Gold-II will be transferred to Term

Deposit account. The transfer is done automatically by the system. The transfer is

done at the end of the business hours and, therefore, there will be only one transfer to

Term Deposit in a day.

5. Period of Term Deposit

The amount transferred from SB. to Term Deposit will be placed for a period of 6

months. There is no choice for the depositor to decide the period of deposit.

6. Type of Term Deposit

The amount transferred from SB. to Term Deposit will be placed under Re-investment

Deposit Scheme only.

7. Renewal of Term Deposit

The RDP opened by transfer from SB. will be automatically renewed, on due date, for

a further period of 6 months.

:18: 8. Rate of interest

Balance in the SB account is eligible for SB interest in force, i.e., 3.50% p.a. The

amounts placed in Term Deposits will be paid interest at the prevailing rate on the date

of placement of each deposit, applicable for 6 month deposit. The present rate for a 6

month deposit is 6.00% p.a.

9. Maintenance of Term Deposit

Each transfer from SB will be treated as a separate deposit and due date fixed

accordingly. The deposits are to be kept in units of Rs.2,000/-.

Therefore, a Rs.10,000 transfer will be kept as 5 deposits of Rs.2,000/- each. The

depositor will not be given a printed deposit receipt but a statement of account will be

given.

10. Withdrawal of Term Deposit

If the depositor wants to withdraw money from SB either across the counter or by

issuing cheques to third parties and if sufficient balance is not available in the SB

account, the required number of units will be closed from the Term Deposit account

and transferred to SB account to meet the withdrawal. The last transfer made to Term

Deposit will be closed first under Last In First Out (LIFO) method. Interest will be

paid on completed months only.

11. Premature Closure of Term Deposit

In case there is a necessity to close the deposits before the maturity date, the interest

on the deposits will be paid in terms of the extant guidelines on premature closure of

term deposits which are as follows :

If the minimum period of 30 days is completed, the interest payable for deposits up to

Rs.5 lakh is the applicable rate for the period the deposit remained with the Bank.

If the deposit amount is more than Rs.5 lakh a foreclosure charges of 1.00% is

deducted from the applicable interest for the period the deposit remained with the

Bank.

12. Loan on Term Deposit

No loan is envisaged as the system allows easy premature closure of required amount

only for meeting withdrawal.

13. Opting out of the scheme by the depositor

If the depositor wants to withdraw from "Liquideposit" scheme, he may do so by

requesting in writing. The Term Deposits can be allowed to be continued as normal

deposits if the depositor so desires.

14. Additional interest rates for term deposits

Staff members and Senior citizens will not get the additional interest under

Liquideposit scheme.

15. Implementing branches

The scheme can be implemented only in fully computerised environment and,

therefore, the scheme will be implemented only in CBS branches

21.5 Guidelines on Special products

a. At present, these special products are marketed through all CBS branches.

b. All existing customers as and when they request and new accounts at the time of

opening the account are eligible under the scheme. Staff accounts are also eligible

provided they comply with all the norms of the scheme. The format of request cum

undertaking letter is given in para 20.6.

c. The Bank shall review special status of accounts under various schemes on a

quarterly basis (June, September, December and March). If the required minimum

balance is not maintained, the special status of the account will be cancelled, the

account decategorised and the concessions recovered from the customers.

d. Under liquideposit facility, the balance in the SB account alone will be considered for

computing average balance for determining the special status.

e. The balance in Term Deposits is eligible for interest only when the balance remains

in TD for more than 30 days.

f. For computing quarterly average balance, only completed calendar quarters will be

reckoned. Same norm will apply if existing / new customers request special status

in the middle of a quarter.

g. For Internet banking and online Tax payment, all accounts should be registered for

internet banking. For e-mail and SMS alerts, the e-mail ID/ cell numbers

respectively of the customers should be registered.

h. Features / concessions falling within the control of the branch:

Transfer of funds through NEFT

Waiver of Demat charges

Concession on cheque books

Transfer of funds through RTGS

i. Features/concessions under systems control

i.e. The system will prompt the user to enter the current a/c no at the time of DD

posting and extend the concession if the a/c no falls under any of the eligible

schemes.

Issue of DD

Cheque collection charges

Folio charges

j. Utility Bill payment facility Available to customers who have registered for E-See

banking.

k. Online trading facility Our customers who open demat account with M/ s MF

Global Sify Securities (www.mfglobal.in) can do online trading at the site. For

payment instructions they have to use our banks internet facility using the drop

down menu available at the site under transfer of funds option.

l. Non-personalized ATM cards are to be given to the customers on day one.

m. Branches should comply with all norms of account opening and obtain customers

undertaking in the relevant formats for extending facilities under these products.

n. Overdraft facility of one months salary under SB-Silver can be extended after

verifying salary certificates and after obtaining necessary documents.

o. The facilities under these special products can be utilised by the CBS branches for

retaining the existing customers. However, more thrust should be given for

mobilising more number of new accounts for improvement of CASA.

p. Regional Heads should activate the marketing team in the Region and ensure that

the groups targeted under each product are contacted personally for mobilising

their accounts.

q. All branches should extend excellent customer service for mobilising more new

customers and retaining the existing customers.

r. The customers of special accounts should be provided with a kit containing ATM

card, cheque book, pass book, SB/CD rules, codes of BCSBI, schedule of

charges, in a specially printed envelope each for SB-Silver, SB-Gold, CD-

Classic and CD-Super respectively.

For requirement of kit materials, branches and Regional Offices are requested to

take up with Printing and Stationery department and I.T department respectively.

Branches are to use the SB/CD rules 2007 book already supplied by CO to RO in

adequate quantity as a kit material.

s. Branches should ensure that the facilities available for the products are made

immediately available to the customers. For facilities like Multicity Cheques, name

printed cheque books, overseas travel card etc, branches should make them

available to the customers at the earliest by immediately taking up with the

concerned layer of authority.

21.6. Application for "Special SB Account

(Annexure to Savings Bank Account Opening form)

Indian Overseas Bank

.. Branch

SB Account Number : .. Opened on :

1. Name of the Depositor(s) 1.

2.

3.

2. Address of Depositor(s) 1.

2.

3.

3. I / We wish to open a special SB account and agree to the terms and conditions

governing the scheme which may be in force from time to time.

4. Please transfer to the term deposit account for a period of 6 months all amounts over

the threshold balance of Rs.35,000/65000/125000 and in units of Rs.2,000/- from

my S.B A/C No._______

(The period of deposit can be 6 months only)

5. I / We agree to maintain a minimum quarterly average balance of Rs.25,000/=

50000/=/100000/= always in S.B account

6. I / We authorise you to automatically renew the term deposit on maturity date for

an identical period of 6 months at the interest rate prevailing at the time of such

renewal

7. I / We agree that the balance amount held in Savings Bank A/C will only earn S.B

interest which at present is 3.50%

8. I / We agree to receive periodical statement of account (Instead of printed deposit

receipts) for the amounts held in term deposits

9. In case the balance in S.B a/c is insufficient to meet withdrawals in any form and /

or any cheque received in clearing or otherwise or is below the required minimum

balance of Rs. 25,000/-/50000/-/100000, I / We agree to your transferring required

number of units interest earned from the units closed will not be considered and

principal alone will be reckoned for this purpose - from the term deposit account to

S.B account, even if it means premature closure of some or all of the units, in order

to meet the shortfall in the S.B a/c. The units last transferred to Term Deposit will

be closed first whenever such transfer to S.B is required under last in first out

method.

10. In case of premature of closure of units in Term Deposit either as required in point

No.9 or at my / our request, I / We agree to receive the interest on the

prematurely closed units as follows:

I. If the deposit (units) has not completed 30 days from the date of transfer to

Term deposit / or from the date of renewal no interest is payable.

II. If the deposit has completed > 30 days from the date of transfer to Term

Deposit / or renewal

a) Interest at applicable rate for the period the units have run prevailing at the

time of transfer or renewal is payable, if the total amount of units closed at

one time is not more than Rs.5 lakh.

b) If the total units closed at a time are more than Rs.5 lakh, interest payable

is 1.00% less than the applicable interest for the period the deposit has run

prevailing at the time of transfer / renewal.

c) The additional interest is not allowed for term deposits of senior citizens and

staff of IOB.

11. I / We understand that no loan can be raised against the balance amount or

accrued interest in Term Deposit account.

12. I / We agree to deduction of Tax at source on interest earned on Term Deposit as

per income tax rules in force.

13. I / We agree that the account cannot be transferred to another branch. In case I /

We want to operate the account in another branch I / We agree for closure of the

Liquideposit account, which may also involve premature closure of some of the

units and open a fresh deposit at the other branch.

14. I/We understand that the terms and conditions relating to premature closure,

interest rates and closure of deposits are subject to change from time to time

without notice.

15. I / We agree that any addition / deletion of names in the case of joint account is

applicable for both the S.B portion and Term Deposit portion of the Liquideposit.

16. I / We agree that any overdraft created in the S.B a/c during business hours is only

for operational convenience and the overdraft will be adjusted at the end of the day

by transfer from Term Deposit. I / We agree not to demand any overdraft facility

on the basis of the overdraft created temporarily.

17. I / We understand that any Garnishee Order / Income Tax attachment order etc.,

received will attach both the S.B and Term Deposit portions. I / We also understand and

agree that during the period the Garnishee Order / I.T. Attachment order etc, there will be

no renewal also of the matured Term Deposits/ no creation of fresh deposits and no

operation will be allowed in SB account. Upon the vacation of the Garnishee / I.T.

Attachment order etc. the matured deposits will be treated as overdue deposits and I / We

agree for their renewal under the guidelines for renewal of overdue deposits prevailing at

that time.

Place: Signature of Depositor(s)

22. SAVINGS BANK ACCOUNTS UNDER CAPITAL GAINS ACCOUNTS SCHEME, 1988

22.1. Branches situated in non-rural areas can accept deposits under the above scheme

to enable the tax payers to avail of the benefit of exemption from Capital gains.

Such an exemption can be claimed by the tax payers only if the amount of capital

gains or the net consideration is deposited in the Bank account on or before their

due date of filing a return of income in accordance with the scheme.

These accounts can be opened only by those tax payers who are eligible for

exemption under Section 54, 54-B, 54-D, 54-F OR 54-G of the Income Tax Act,

1961 (43 of 1961).

22.2. Authorised branches may open Savings Bank accounts under the above scheme as

per the guidelines given in the succeeding paragraphs.

22.3. The accounts opened under Savings Bank account are to be classified under

Deposit Account - A under the General Ledger head SAVINGS BANK (CAPITAL

GAINS ACCOUNTS SCHEME, 1988) WITH CODE NO 1203 and shown under

Demand Liabilities in the General Ledger balance sheet. Accounts opened as Term

Deposits are to be classified under Deposit Account B under the General

Ledger head Term Deposits (Capital Gains Accounts Scheme, 1988) with

Code No.1010.

22.4. OPENING OF ACCOUNTS UNDER CAPITAL GAINS ACCOUNTS SCHEME, 1988

ACCOUNTS UNDER THIS SCHEME MAY BE OPENED AS SAVINGS BANK

ACCOUNTS DESIGNATED AS DEPOSIT ACCOUNT A UNDER THE SCHEME

AND/OR TERM DEPOSITS DESIGNATED AS DEPOSIT ACCOUNT-B UNDER

THE SCHEME. ( For term deposits scheme branches shall refer to the

master circular on term deposits )

i) All formalities for opening of accounts viz., completion of the relevant application

form, specimen signature sheets, obtention of satisfactory introduction etc. should

be complied with by the branch before opening an account under this scheme.

Joint Accounts are not permitted under Capital Gains Accounts Scheme. KYC-

Norms / AML Standards will also apply to these accounts.

ii) Branches shall use the account opening form FORM - A (specimen provided in

Annexure II) for opening of Savings Bank accounts under the scheme.

iii) All the relevant columns in the form should be completed and the specific section

of the Income Tax Act under which the depositor is claiming exemption should be

noted clearly.

iv) Once the completed application form is received, the officer-in-charge of the

department should verify that all particulars have been incorporated in the

application form. He/she should then, obtain the approval of the Manager/Deputy

Manager for opening the account. The account may then be opened under

Savings Bank (Capital Gains Accounts Scheme,1988).

v) Deposits may be made in lumpsum or in installments at any time on or before the

due date of filing the return of Income Tax as applicable to the depositor under

the Income Tax Act.

vi) Separate accounts should be opened if the depositor intends to avail the benefit

under more than one of the above sections of the Income Tax Act.

vii) Branch may accept the deposit either in cash or by crossed cheque or by draft

(subject to realisation) along with the application. Subsequent deposits should

also be made at the same branch where the original account has been opened.

The effective date for claiming exemption under the Act in the case of deposits by

cheque/draft will be the date of tender of those instruments subject to their

realisation.

22.5. OPERATIONS IN THE ACCOUNTS UNDER CAPITAL GAINS ACCOUNTS

SCHEME, 1988

i) Authorised branches should issue Savings Bank pass books to the

depositors recording all deposits, withdrawals together with interest

due, duly authenticating all the entries. These Passbooks should

never be retained by the branch. Cheque Book facility is not

permitted in view of the system of withdrawal through submission of prescribed forms as per the schedule.

ii) For initial withdrawal, the depositor should apply in Form- C

(specimen provided in Annexure IV) and for subsequent

withdrawals in Form -D (specimen provided in Annexure V) (in

duplicate) additionally. Branch should preserve one copy of Form D and

return the other to the depositor. Such Form-D should be kept stitched

along with the days voucher. Branches should refuse withdrawal

unless Form -D is filled up with complete details and duly

signed.

Withdrawals for amounts exceeding Rupees Twenty Five thousand

should be paid to the depositor only by way of crossed demand draft

drawn in favour of the person to whom the depositor intends to make the payment.

iii) Interest

Interest on Savings Bank accounts opened under the scheme shall be paid

at the rates applicable for ordinary Savings Bank accounts and in the

same manner. Interest on amounts deposited by cheques will run from the

date of their realisation. Minimum half-yearly interest payable will be Rupee One.

iv. Transfer of the account from one branch to another of our bank is

permitted on application by the depositor.

v. Utilisation of the amounts withdrawn from the account is subject to the

relevant provisions of the Income Tax Act. The unutilised amounts out

of the withdrawals may be permitted to be deposited back into the

account immediately after the expiry of sixty days from the date of

withdrawal.

22.6. NOMINATION for Capital Gain scheme accounts

Branches are permitted to accept one or more nominations for the accounts opened under

the scheme

22.7. Branches are permitted to convert balances under savings bank accounts under

the scheme into Term deposits (under Account-B) and vice versa. Deposits made

in the form of term deposits under the scheme are classified under Account-B

Term Deposits (Capital Gains Accounts Scheme, 1988).

Such applications should be made on Form - B (specimen provided in

Annexure III) (for detailed guidelines on term deposits under the scheme

branches are to refer to master circular on term deposits.

22.8. CLOSURE OF ACCOUNTS UNDER CAPITAL GAINS ACCOUNTS SCHEME,

1988:

Accounts under the scheme may be closed only with the prior written approval of

the Assessing Officer (Income Tax Department, Government of India) having

jurisdiction over the depositor.

The depositor should apply to the Assessing Officer for closure of the account and

branches can pay the amounts including accrued interest, if any, only after obtaining the

specific written approval of the above authority and the application for closure of account

in Form G (provided in Annexure VI) duly completed and signed by the depositor The

proceeds of the account thus closed should be paid only by credit to the depositors

account at any Bank.

Regarding payments to nominees or legal heirs branches should refer to master circular

on nominations.

22.9. Authorised branches should advise the following details monthly to Government

Accounts and Currency Chest Department, Central Office, with a copy to Regional Office for purpose of control, feed back to Reserve Bank of India/Government authorities.

*********************************

PARTICULARS OF DEPOSITS RECEIVED UNDER

CAPITAL GAINS ACCOUNTS SCHEME 1988

I. ACCOUNT A

Sl No.

Name of Account

Holder

Balance as on

Opened under Section

No....... of IT Act

1 2 3 4

II. ACCOUNT B

Term

Deposit

receipt no.

Nature

of

Deposit

Full Name &

Address

Amoun

t

Perio

d

Due

Date

Opened

under Sec.

No.... of IT

Act

1 2 3 4 5 6 7

I. Details of transfer/withdrawals/conversion of any existing accounts

(if otherwise state NIL)

Account No. Nature of transactions

IV. SUMMARY

Account A

Account B

Balance as per General Ledger

as at close of previous month Rs. .................. Rs. ..................

ADD receipts during the month Rs. .................. Rs. ..................

LESS

withdrawals/conversions/transfers/

closures etc.

Rs. .................. Rs. ..................

Balance as per General Ledger

as at close of month under report

22.10. Formats for Savings bank Capital Gains account scheme1988

Deposit office mentioned in the forms relate to our bank.

******************************************************************

ANNEXURE II

FORM A

(See sub-paragraph (i) of paragraph 5)

(To be submitted in duplicate)

Name of the Deposit Office

Serial No___________

APPLICATION FOR OPENING AN ACCOUNT UNDER

THE CAPITAL GAINS ACCOUNT SCHEME 1988

To

The Manager

______________________________________

(Name & address of the Deposit Office)

I,_____________________________ (Name & address of the

Applicant/Depositor) aged__________ years__________ 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 Act)* in

my name/ *in the name of _______________________ (Name of the depositor)

of whom I am the *guardian/*karta/*authorised officer, and tender herewith the

amount of Rs.________________ in cash/by way of *crossed cheque/* Demand

Draft, towards deposits 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.

3 (a) Applicants 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 :

4. Depositors permanent I.T.

Account No.

District/Ward/Circle/Range where

assessed

5.

Previous year (as applicable in

case of the depositor)

: From__________

To ___________

6. Assessment year in respect of

which deposit is to be made

7. (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

Account-A

: Rs__________________

(in figures)

Rs__________________

(in words)

(ii)

Amount to be deposited under

Account-B

: Rs__________________

(in figures)

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:

Place : SIGNATURE/THUMB IMPRESSION OF THE

DEPOSITOR/OF THE GUARDIAN/ KARTA/AUTHORISED

OFFICER OF THE DEPOSITOR

ADDITIONAL SPECIMEN

FOR THE USE OF DEPOSIT OFFICE

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

__________________________________________ (name of the

depositor)* (as *Cumulative/*non-cumulative deposit)*.

(b) Deposit Receipt No.____________ for Rs.____________________ dated

___________________ has been delivered on ___________to the

*applicant/*depositor.

3. Cheque No._______________ dated __________ for Rs._________ drawn on

______________ tendered by the *applicant/*depositor, has not been

realised, hence account has not been opened.

Date:............. OFFICER-IN-CHARGE

Notes:

* 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 the minor.

5. If space provided in 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.

***********************************************************************

ANNEXURE III

FORM - B

(See sub-paragraphs (2),(3) & (7) of paragraph 7)

Name of the Deposit Office

Serial No.________

APPLICATION FOR CONVERSION OF ACCOUNTS

UNDER THE CAPITAL GAINS ACCOUNTS SCHEME 1988

To

The Manager

____________________

_____________________

(Name & Address of the Deposit Office)

1. I _______________________________________________, hereby (Name

of the *Applicant/*Depositor) apply for

2. Transfer of the principal amount 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 depositors);

(a) 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 retained 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 and address of the depositor) for a period of __________________

days/months/years with effect from ____________ (date) and to transfer

the sum of Rs______________(in figure) 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.

6. * The application is made by me as authorised officer of the aforesaid *

firm______________________/___________________*company

/*Association of Persons/*Body individuals.

Date:

Place:

SIGNATURE/THUMB IMPRESSION OF THE DEPOSITOR/THE GUARDIAN/

KARTA/AUTHORISED OFFICER OF THE DEPOSITOR.

********************************

ADDITIONAL SPECIMEN FOR THE USE OF DEPOSIT OFFICE

FORM-B

*(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 figure) (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/*which has been

opened on _________ (date) in the name of the aforesaid depositor

__________________ (name of 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

sum of Rs._____________ (in figures) [Rupees

_________________________(in words)] has been opened on

______________ (date) for a period of ______ days/month/year(s) 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

Notes:

*1. Score out whichever is not applicable.

2. If space provided in a column or columns 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.

***********************************************************************

ANNEXURE IV

FORM C

(See sub-paragraph (1) of paragraph 9)

____________________________________________

(Name of the Deposit Office)

Serial No_________

APPLICATION FOR WITHDRAWAL OF AMOUNT FROM ACCOUNT-A UNDER

THE CAPITAL GAINS ACCOUNTS SCHEME 1988

To

The Manager

____________________________

____________________________

(Name & address of the Deposit Office)

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 utilised 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 may be paid to ________________ (Name and 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 herein above.

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 authorised officer of the aforesaid depositor

*firm __ /___ *company /Association of persons/Body of individuals.

6. The application is made by me as Karta of the aforesaid depositor

___________ Hindu undivided family.

Date: SIGNATURE/THUMB IMPRESSION OF THE

DEPOSITOR/THE GUARDIAN/KARTA/ AUTHORISED OFFICER OF THE DEPOSITOR

Place :

ADDITIONAL SPECIMEN

FOR THE USE OF DEPOSIT OFFICE

(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 provisions 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) Cheque/Demand Draft issued ______________________ (Details may

be noted)

Date:................ OFFICER-IN-CHARGE

NOTES:

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. Column 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.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

ANNEXURE V

FORM - D

(See Sub-paragraph (3) of paragraph 9)

To be submitted in duplicate

________________________

Name of the Deposit Office

Serial No_____________

DETAILS REGARDING THE MANNER AND

EXTENT OF UTILISATION OF THE AMOUNT WITHDRAWN

FROM ACCOUNT UNDER THE CAPITAL GAINS ACCOUNTS SCHEME, 1988.

To

The Manager

____________________

____________________ (name & address of the Deposit Office)

1. I, ____________________ (Name of the applicant/depositor) S/o

_______________________ residing at ___________________ am

furnishing in terms of sub-paragraph (3) of paragraph 9, the requisite details

regarding the manner and extent of utilisation of the amount of Rs.

__________ (in figures) (Rupees _______ (in words)) 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 __________________ (name & address of the depositor)

2. Manner / purpose for which amount withdrawn, mentioned herein

above has been utilised:

Purpose

Amount

PARTY TO WHOM PAYMENT

has been made

Voucher No.

Receipt No.

(with date)

(1) (2) (3) (4)

3. I hereby declare and confirm that the amount withdrawn, which is mentioned

herein above, has been utilised *partly and the balance of

Rs.________________ was re-deposited on ________________ to the credit

of aforesaid account/*wholly for that purpose mentioned herein above under

column 2.

4. This declaration is made by me on behalf of the aforesaid minor depositor

______________________________ of who 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

authorised officer to make this declaration.

6. This declaration is made by me as Karta of the aforesaid ________________

Hindu undivided family.

Date: SIGNATURE/THUMB IMPRESSION OF THE DEPOSITOR/THE GUARDIAN/KARTA/AUTHORISED OFFICER OF THE DEPOSITOR

Place

ADDITIONAL SPECIMEN

PAN AND ~DISTRICT/WARD/CIRCLE/RANGE WHERE ASSESSED

FOR THE USE OF DEPOSIT OFFICE

Withdrawal of Rs.________________ permitted/ *not permitted as the details in

respect of total amount of Rs.________________ withdrawn on

________________ have not been furnished.

*Applicant/ *Depositor has been advised to furnish the details.

Date:......................... OFFICER-IN-CHARGE

Notes:

*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 one 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.

********