The document outlines the long-term deposit policy of Kapol Cooperative Bank. It provides details on the bank's history, branches, customers, and audit rating. The bank offers four main deposit schemes - tax saving, fixed, recurring, and special deposit schemes. Interest rates for long-term deposits range from 6-10.1% depending on the deposit period and amount. The rates are generally higher than competitor Union Bank of India. Kapol Bank also provides more options for lock-in periods and special high-interest schemes not offered by Union Bank.

1. Long-term Deposit Policy
Kartikey Jain
866
BBA LLB (Hons.)
VI Semester

2. Introduction
•
The Main objective of the Bank is to service the downtrodden and economically
weaker sections of the society
•
The Business growth is given as under -
•
Established in 1939
•
67963 Shareholders
•
Dividend @ 10%
•
Fully computerized 15 branches and Departments all interconnected (CORE
BANKING).
•
The Winners of "PIONEERS IN CORE BANKING"
•
Customers over 250000
•
Audit rating 'A'
•
Staff 395

3. •
OTHER DETAILS ARE -
•
The Bank introduced PAN CARD facility
•
The Bank has tied-up with Corporation Bank e-Tax Payment system
•
The Bank has introduced Franking facility for Document Stamping.
•
The Bank has tie-up with Max Life Insurance for life insurance products.
•
The Bank was the first to introduce the new concept of "COUNTER LESS BANKING".
•
The Bank is amongst the first to introduce DEMAT SERVICES in May 1999. It has an active client base
of over 24000.
•
The Bank achieved "SCHEDULED BANK STATUS" in January, 1998 and "MULTI-STATE" status on
9th August, 2000 with area of operation extended to Ahmedabad and Surat Districts in Gujarat State.
•
The Bank has 14 branches in Mumbai and one branch in Surat which are fully computerized.
•
The Bank has provided ATM facility at Vile Parle (West), Malad (W), Picket Road (Kalbaddevi) ,
Mulund (W) and Kandivali (W) Branch and is in the process of providing ATM services at one more
branch.
•
CORE BANKING SOLUTION : The Bank has established its Core Banking Solution and
interconnected all its Branches and ATMs to provide quick & quality services to the customers which
facilitates "ANY WHERE AND ANY BRANCH BANKING".
•
RTGS & NEFT : The Bank is an active member of "RTGS / NEFT" introduced by the Reserve Bank of
India.

4. Deposit Policy
•
Important Notice to Depositors: As per section 206AA introduced by Finance
(No. 2) Act, 2009 w.e.f. 01.04.2010, every person who receives income on which
TDS is deductible shall furnish his PAN, failing which TDS shall be deducted at
the rate of 20% (as against 10% which is existing TDS rate) in case of Domestic
deposits and 30.90% in case of NRO deposits. In the absence of PAN, Form
15G/H and other exemption certificates will be invalid even if submitted & penal
TDS will be applicable.
•
Kapol Bank has 4 types of Deposit Schemes



Tax Saving Deposit Scheme
Fixed Deposit Scheme
Sanchay Nidhi Scheme
Term Deposit Scheme

5. Special Deposit Scheme

6. Deposit Types
•
Sanchay Nidhi - Under this scheme you can deposit for any period from 12 months
to 72 months. This is a reinvestment scheme; interest is calculated on quarterly
basis and compounded.
•
Fixed Deposit - Under this scheme, you can deposit for various periods ranging
from 30 days to 72 months. Interest is paid on monthly / quarterly / half yearly /
yearly basis, as desired by you.
•
Tax Saving Scheme – The Kapol Bank has introduced a new scheme vide which
you can not only deposit your amount and avails best interest rates but also you can
get the tax deduction, the details as below :-
•
Investment up to Rs.1,00,000/-
•
Period of Deposits : 5 years (Lock-in-Period)
•
Tax Relief under Sec 80C of the Income Tax Act.
•
Rate of Interest: 8.50% with quarterly rests.
•
Interest is taxable.

7. Long-term Deposit Rates
Period of Deposits
15 days
46 days
91 days
181 days
months
12 months
to
to
to
to
45 days
90 days
180 days
less than 12
Revised w.e.f. 18.02.2013
Sr. Citizen
General Public *
6.00
7.00
7.00
8.00
6.00
7.00
7.00
8.00
9.25
9.75
Above 24 months to 36 months
9.25
9.75
Above 36 months to 60 months
9.00
9.50
Above 60 months
500 days only (New)(Simple
Interest)
8.00
10.10
8.00
10.35
to 24 months
*General Public: Individual, Co-operative Housing Society,
Registered Trust & all other category of deposits.

8. Long-term Deposit Policy

9. Introduction
•
Vision Statement - To become the bank of first choice in our chosen areas by
building beneficial and lasting relationships with customers through a process of
continuous improvement
•
Established on 11th November 1919 with its headquarters Mumbai
•
100% Branches are computerized
•
49 million clients
•
At the end of March 2013 the Bank achieved total business level of Rs. 4,75,673
crore (Rupees four lakh seventy five thousand six hundred seventy three crore).
•
31,000 staff members

10. Deposit Policy
•
Recurring Deposit Scheme
 Cumulative Deposit
 Union Monthly Plus
 Union Million
•
Fixed Deposit Scheme






Short Deposit Receipt
Fixed Deposit Receipt
Monthly Income Scheme
DRIC
Union Tax Saver Deposit
Union Capital Gain Deposit

11. Recurring Deposit Scheme
 Cumulative Deposit - Union Cumulative Deposit Scheme is mainly aimed at lower /
lower middle / middle / upper middle and salaried sector. It mainly encourages small
investors to save in easy monthly installments over a fixed period of time.
 Union Monthly Plus - A Novel User-friendly Recurring Deposit Scheme, with flexibility
of Step Up and Step Down options, with monthly installment.
 Union Million - To encourage long term deposits from customers, the Bank has
launched a new deposit product called Union Million Deposit at competitive rates.
 The Union Million Deposit Scheme is designed to meet customer demand for a deposit which
meets a predetermined target amount. The Maturity Value will be Rupees One Million [i.e. Rs Ten
lakhs] for a ten year plan at a rate of 8.00 % p.a., compounding quarterly.
 The deposit can be either in the form of a Deposit Reinvestment Certificate with lump sum
investment of Rs 4,52,891 or a Cumulative [recurring] Deposit with monthly installments of Rs
5,450.

12. Fixed Deposit Scheme
•
Short Deposits - Deposits for a period of 7 days and above but not exceeding 179
days are classified as Short Deposits. Minimum amount that can be deposited under
this scheme is Rs.5 lacs for a period of 7-14 days.
•
Fixed Deposit - Deposits for a period of 197 days and above but not exceeding 10
years are classified as Fixed Deposits. Rs.10,000/- for FDR in Metro and Urban
Branches and Rs.5,000/- in Rural and Semi urban branches, and for senior citizens
the minimum amount will be Rs. 5000/-
•
Monthly Income - The scheme features interest payable at the contracted rate
every month, on the fixed deposit which is accepted for any period from one year to
ten years. The deposit can be placed for 6 months to 120 months
•
DRIC - This is an ideal scheme for investing a lump sum amount where interest is
compounded quarterly and paid along with the principal amount invested. Deposits
can be accepted for any period from 6 months to 120 months. Minimum amount of
deposit will be Rs.100/- in Rural/Semi-urban centers and Rs.500/- in Urban/Metro
centers. Interest at applicable rate for the period for which the deposit is kept, is
automatically reinvested at quarterly intervals.

13. •
Union Tax Saver - The amount to be invested in the term deposit of the Bank shall
be a minimum of Rs.5,000/- and in multiples of Rs.1,000/- thereof and maximum
limited to Rs.1,00,000/- in a financial year. Deposit will be accepted for a minimum
period of 5 years and maximum period of 10 years.
•
Union Capital Gain - Two types of deposit accounts can be opened under this
Scheme
 DEPOSIT 'A' - The deposits made under this account shall be in the form of Savings Bank
Deposits
 DEPOSIT 'B' - Deposit made under this account will be in the form of Term Deposits, with an
option to retain the deposit either as "cumulative" i.e. similar to our DRC Deposit [with interest
reinvested] or as non-cumulative i.e. similar to our Fixed Deposit
 Such deposits may be made as a single lump sum amount or in instalments at any time on or
before furnishing the Income Tax Return
 WITHDRAWALS - Withdrawals under Deposit Account - A can be made from time to time by
the depositor, subject to prevailing terms and other provisions of the Scheme, by submitting
the requisite form. Withdrawals under Deposit Account - B can be made after the expiry of the
deposit period

14. Long-term Deposit Rates
Period (effective
from 21/02/2013)
< Rs 15 lacs
7 day – 14 day
15 day – 45 day
46 day – 90 day
4.00
4.75
6.25
4.00
4.75
6.25
4.00
4.75
6.25
4.00
4.75
6.25
91 day – 120 day
7.25
7.25
7.25
7.25
121 day-179 day
180 day to < 1
year
7.75
7.75
7.75
7.75
8.50
8.50
8.40
8.40
1 year to < 3 year
9.00
9.00
9.00
9.00
9.00
9.00
8.90
8.75
9.25
9.00
8.90
8.75
9.00
9.00
8.90
8.75
8.75
8.50
8.50
8.50
3 year to <7 year
7 month
7year 7month
>7year 7month to
8year
> 8 yearto 10
year
Rs 15 lacs to < Rs 1 Cr to < Rs 5 Rs 5 Cr to Rs 10
Rs 1 Cr
Cr
Cr
* For senior
citizens –
additional
0.50%

15. Comparison of Interest rates of Kapol
Cooperative Bank & Union Bank of India
Interest Rates (%)
9.4
9.25
9.2
9.25
9
9
9.25
9
9
9
8.8
8.5
8.6
8.4
8.2
8
8
8
7.8
7.6
7.4
7.2
Upto 1 year
1 year - 2 year
2 year - 3 year
Kapol Bank
Union Bank
3 year - 5 year
above 5 year8

16. Comparison of other services &
benefits provided by the banks
Kapol Bank
Union Bank
•
Withdrawal is allowed only after
maturity period.
•
•
Provides more option with different lockin periods.
Withdrawal is allowed even before the
expiry of the maturity period, but with
penalties.
•
Special Deposit Schemes for 500 days
providing high interest of 10.10%.
Provides comparatively less option with
different lock-in periods.
•
Different slabs of interest rate for
different amount of deposits.
•
•
Same interest rate for any amount of
deposit

17. Thank You
Questions?