Long term deposit policy of rajkot nagarik sahakari


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Long term deposit policy of rajkot nagarik sahakari

  1. 1. Long Term Deposit Policy of Rajkot Nagarik Sahakari Bank vis-à-vis Indian Bank Rohan Tigadi [872] Principles and Practices of Banking National Law University, Jodhpur
  2. 2. Rajkot Nagarik Sahakari Bank  Established on 5th October, 1953 in Rajkot, Gujarat.  Keshavlal Amruthlal Parekh was the founder of the bank  Presently, the bank has 2,50,000 shareholders and a deposit base Rs.2132.73 crores.
  3. 3. Recurring Deposit  Ideal Scheme for salaried class investor.  Recurring Deposits are a special kind of term deposits offered by banks in India which enable people with fixed income to deposit part of their account.  Any individual can open a recurring deposit account  Minimum amount of monthly installment is Rs. 100  Irregularity in the deposition of deposits attracts penalty.
  4. 4. Current Rate Of Interest.  12 Months 9.00%  24 Months 9.00%  36 Months 9.00%  60 Months 9.00%
  5. 5. Fixed Deposits  Any individual introduced by the Existing Account     holder, Shareholder member or any gentlemen known to the bank Maximum of 3 names are allowed in Joint Account Minimum Amount of Rs.1000 Nomination Facility available. Share Membership is offered to depositor for FDr amount exceeding Rs. 1,00,000 in double scheme.
  6. 6. Types of Fixed Deposits  Re-investment: In this scheme interest is re- invested and compounded on quarterly basis.  Monthly Regular Income Scheme: In this scheme, interest is paid on monthly basis. Ideal scheme for pensioner /retired/ senior citizen.
  7. 7. Indian Bank: Introduction  Indian Bank is state owned financial services company headquartered in Chennai  It has 22000 employees, 2100 branches and is one of the public sector banks in India  Since 1969, Government of India has owned the bank after nationalization.
  8. 8. Long Term Deposits offered by Indian Bank  Recurring Deposits  Fixed Deposits  Deposit Scheme for Senior Citizens
  9. 9. Recurring Deposits  Recurring Deposits are a special kind of term deposits offered by banks in India which enable people with fixed income to deposit part of their account.  The different type of recurring deposits provided in Indian Bank 1. Insured Recurring Deposit 2. Variable Recurring Deposit 3. Swarna Nidhi Recurring Deposit
  10. 10. Insured Recurring Deposit  Eligibility: RD account holders of the age group 18 to 55 years as on the date of opening  Salient Features: A recurring deposit with low cost life insurance cover.  Amount: Rs. 10 to 10,00,000  Period: 3-5yrs.
  11. 11. Details of Recurring Deposit Scheme  Maturity value is the normal maturity amount less premium paid by the bank towards insurance cover.  Nomination facility available  No preferential rate of interest will be given to senior citizens.  No medical check-up is required for the RD deposit holders of any age. A simple declaration of good health is sufficient.
  12. 12. Variable Recurring Deposit  A Recurring Deposit scheme with the option of varying the monthly installments is called the variable recurring deposit scheme.  Period: 12 months to 120 months.  Amount: Initial Deposit of Rs. 25 or in multiples of Rs.25 upto a maximum of Rs. 1 lakh. Can vary subsequent monthly installment subject to a maximum of Rs. 10, 00,000 in a month.
  13. 13. Variable Recurring Deposit  Loan, nomination and foreclosure requirements  No penal interest on delayed payment of installments
  14. 14. IB Swarna Nidhi Recurring Deposit  A recurring deposit with the option to purchase Gold coin of Indian Bank at maturity value.  Period: 6 to 24 months  Discounts on the gold coins to be purchased from the proceeds at Rs. 25/- kilogram. Maturity value of Rs.12,000 or more additional incentive of free personal accidental insurance of Rs.1 lakh by issuing IB Chatra Policy of the Bank
  15. 15. Facility Deposit  A time deposit with built in Overdraft facility with a     limit of 90% of Deposit Amount. Amount: Minimum Deposit Amount – Rs.10,000/and further in multiples of Rs.1000/Period: 1yr to 3yrs. Automatic Renewal Facility for Equal Period Available under the Fixed Deposit Scheme
  16. 16. Deposit Scheme for Senior Citizens  Amount: Rs. 1,000 to Rs. 5,00,00,000  Suitable for senior citizens with additional rate of interest and value additions  Age proof of having completed 60 years  Free fund transfer upto Rs. 5000 p.m. or interest whichever is higher.  Joint Accounts permitted but first name persons should be senior citizens.