2.recurring deposit

8/12/2019 2.Recurring Deposit

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RECURRING DEPOSIT

ACCOUNT

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RD- opening of a/c

Customer should properly fill up Application

(SB-3) and pay in slip (SB-103).

The following documents are to be tendered by

the customer compulsorily: -

3 copies of recent photograph

Identity Proof

Address Proof

Minimum Denomination Rs.10/- and thereafter

in multiple of Rs.5/-.2


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RD- opening of a/c

Maximum - no limit

Maturity period 5 years.

For accounts opened on or after 01-12-2011maturity value for Rs 10/- Rs 738.62

Rate of interest 8.4% w.e.f 01.04.12

Opened by any adult or minor ( 10 year) or byguardian on behalf of minor.

Two adults jointly can open Account.

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RD Opening of New Account

Procedure same as per Savings Bank new

account open except

introduction is not required Account can be opened through cheque, date

of presentation will be the date of opening

SB-26 receipt is to be prepared Entry should be made in RD Journal

Specimen signature slip is to be pasted in SS

book ( RD) 4


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Opening of account (RD)On receipt of new a/c pass book from AO, it

should be given to depositor by collectingback SB-26 receipt

Acquittance for receipt of PB by depositor

obtained on reverse of SB-26It should be pasted along with office copy of

SB-26

Account number should be noted in SS book,RD journal

Date of delivery of PB is to be noted on RD

journal 5


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Opening of RD account and subsequent deposits

through Pay roll savings scheme

It should be authorized by Head of the

Circle/Regional Director on a selective basis

If there is a need to have the facility of PRS

scheme, application from the institute may beobtained and sent to DO through concerned sub

divisional Inspector for necessary action

If it is authorised ,the transactions should be

through cheque only

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Opening of a/c

Exercise 2.1 Opening of RD a/c

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RD- subsequent deposit

Monthly installment can be deposited on any daybefore the end of the month

By cash

By cheque /DD If installment paid for previous months, default

fee @ 20 Paisa for Denomination of Rs.10/- permonth will be charged and proportionate for

other Denominations

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RD- subsequent deposit

If installment paid in advance for 6 monthor more , rebate will be paid at the following

rate. Dn Rs. 10/- 6 month Re.1/-

12 month Rs.4/-

Proportionate for other Denominations.

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12/27

RD Subsequent Deposit (Cash)

BPM must examine pay in slip & passbook.

Check cash tendered with pay in slip.

For default installment , recover default fee.

For advance installment , give rebate.

Make entry in RD journal

BPM should deliver pass book & counterfoilto depositor.

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Rule No. 13


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Subsequent deposit through

cheque Same procedure as that of SB except

Date of presentation of the cheque is the date

of deposit

Entry will be made in the pass book only after

realisation of the cheque

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Exercise 2.2 to 2.6 on subsequent

dep., default & rebate

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RD-interim withdrawal/loan

Interim withdrawal (RD loan)

Only one withdrawal

After one year from date of opening

After making 12 deposits

Not to be a discontinued account

Not more than 50% of balance(including advance deposits)

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RD-interim withdrawal

Interest on withdrawal is charged at 5year TDrate of interest+ 2 % = 8.3 + 2% = 10.3 %

8.5%+2%=10.5%

Repayment

In one lump

In monthly installments

If repayment is made in monthly installments itshould be Multiple of Rs.5

Amount of withdrawal should be divisible both by 5 aswell as number of installment

Number of installment shall not exceed number of

months remaining for maturity 18


19/27

RD Withdrawal-Procedure

BPM should examine Passbook & SB-7 produced

by depositor & check whether depositor is

eligible for withdrawal

BPM must verify Signature with reference to SS

Book.

Issue SB-28 receipt

Transfer RDPB & SB-7 to AO

On receipt of PB & passed SB-7 from AO, obtain

acquittance in SB-7 & effect payment. Return

the PB to depositor after collecting SB-28 receipt19


20/27

RD LOAN/WITHDRAWAL

Exercise 2.7

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RD- Pre Mature Closure

RD premature closure

Allowed after three(3) years If there are advance deposits- after that

period (Rebate paid need not be recovered)

Issue SB-28 receipt Forward SB-7(a) & passbook to AO

On receipt of passed warrant from AO, obtain

acquittance and pay amount.

A remark A/c closed should be made on

all pages of PB and all other records

Collect the SB-28 receipt and pasted with

office copy 21


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RD-Final closure

Final closure

On completions of 5 years from the date of

opening

If the date of closure falls on a holiday- the

account is closed on previous day

Post Maturity Interest on maturity value is

allowed for a maximum period of five years

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RD-Final closure

Account may be continued up to further

period of 5 years

With monthly deposit Without monthly deposits

Amount payable

For completed years As per the tables Completed months SB rate of interest

RD PMC procedure is to be followed 23


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RD Journal

Entry of opening of account/transactionmade in existing account should be made

in the BO RD Journal.

The column of account number should beleft blank in case of new a/cs.

The new account number is to be noted

only after the same is allotted by the AO. PR number should be noted in the

Remarks column in RED INKfor new a/c.

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2.recurring deposit

Documents