Most Important Terms and Conditions (MITC) of Savings Bank Accounts

As per the Code of Bank’s Commitment to customers, commitments of providing certain important information to customers before opening of Savings Bank (SB) Account is to be ensured so as to enable the customer to take an informed decision.

The Branches are instructed to adhere to the Code regarding giving information to the customer, before opening any deposit account.

The following are the Most Important Terms and Conditions (MITC) for the deposit facility.

We advise the branches to provide the MITC information before opening of Savings Bank Account.

Cheque Returns charges:

• What is Savings Bank Account

  • Savings Deposits means a form of interest bearing ( interest on daily products paid on quarterly basis) demand deposit which is subject to restrictions as to the number of withdrawals as also amounts of withdrawals Basic Savings Bank Deposit Account (BSBDA) permitted by Bank during any specified period.

• Who can open a Savings Bank Account?

  • Savings Bank Deposit accounts can be opened by an individual in his own name or by more than one individual in their own names (Joint). Savings Bank account can also be opened by a Minor jointly with natural guardian or with mother as the guardian.
  • For minors, above 10 years of age can open UCO SMART KIDS - a savings bank deposit account.

• Account Opening Procedures:-

  • The Bank before opening any deposit account will carry out due diligence as required under “Know Your Customer” (KYC) guidelines issued by the RBI and/or such other norms or procedures adopted by the bank.
  • As per extant guidelines, PAN is required to open a account.
  • The due diligence process by the Bank, while opening a deposit account will involve satisfying about the KYC documents i.e., relating to identity of the person, verification of address, satisfying about his occupation and source of income. Bank will also obtain recent photograph of the person/s who is/are opening/operating the account.
  • The branches should invariably update Customer Identification Data including photo once in ten years after account is opened in case of Low Risk Customers, eight years in case of Medium Risk Customers and once in two years after account is opened in case of High Risk Customers to meet the Regulatory requirements.

• Nomination:-

  • Nomination facility is available: -
    1. Deposit accounts
    2. Safe Deposit of articles a/cs.
    3. Locker accounts
  • Nomination is compulsory in all individual/s (single name accounts) and also in sole proprietor accounts.
  • All deposit accounts opened by the individual/s and sole proprietor can avail the nomination facility free of cost.
  • Bank recommends that all depositors should avail of the nomination facility.
  • The depositor has discretion of getting nominee’s name printed on the passbook, term deposit receipt.
  • Only thumb impression of account holder in nomination form, needs to be attested by witness.
  • The nominee, in the event of death of the depositor/s, would receive the balance outstanding in the account as a trustee of the legal heirs.
  • Nomination continues on renewal of term deposit.
  • For Pension accounts a separate nomination will have to be taken as per Pension (Nomination) rules 1983.
  • Nomination shall be made only in favour of Individuals.
  • In the case of a joint deposit account, the nominee’s right arises only after the death of all depositors.
  • Nomination can be changed any number of times before the deposit is matured in case of Term Deposit and during the life of the account in case of others.
  • If the title of the account is changed due to addition/ deletion etc., the nomination is cancelled automatically. In that case, a fresh nomination will be required to avail the nomination facility.

• Interest:-

  • Interest shall be calculated on daily product basis.
  • The specified rate is 3.50% presently(upto Rs 50 lakhs) and 4% above Rs 50 lakhs as decided by Bank from time-to-time.
  • At present, interest is paid on quarterly basis.

• Nature of transactions

  • Savings Bank account (SB A/c) cannot be opened for business purposes as per RBI directives and hence SB a/c should be used to route transactions of only non-business/ non-commercial nature. In the event of occurrence of such transactions or any other such transactions that may be construed as dubious or undesirable, the Bank reserves the right to unilaterally freeze operations in such accounts.
  • 50 Free debit entries are permitted per half year in savings bank a/c.

• Cash Deposit:-

  • For deposit of cash – Cash handling charges shall be levied as applicable.

• Cash Withdrawal:-

  • At base branch no charges are levied for withdrawal of cash. For non-base Branch, charges are applicable after 5 cash withdrawals per month.
  • Cash Withdrawal limit at Non-Base Branches is Rs. 1,00,000/- in all operative accounts against cheques drawn favouring Self. Third Party withdrawal is allowed at Non-Base Branches up to Rs.10,000/- in Savings Accounts and up to Rs.25,000/- in Current/ Cash Credit/ Overdraft Accounts.
  • Withdrawal slip is allowed to withdraw the amount from saving bank account. There is no limit for withdrawal by withdrawal slip.
  • No charges shall be levied in case of transfer of amount lying in the a/c of deceased depositor to other branch(s) of our Bank.
  • Charges for closure of a/c within 14 days :- No Charges. Charges for closure of a/c after 14 days up to a period of one year:-
  • Bank will charge a closure charge as specified by the Bank from time to time. (No charges for closure of accounts in Basic & Small accounts opened under Basic Savings Bank Deposit Account (BSBDA).

• Minimum Balance Requirement:-

  • Customer is required to maintain certain minimum balances in the account as part of terms and conditions governing operations of saving bank accounts.
  • Failure to maintain minimum balance in the account will attract levy of charges as specified by the Bank from time to time. The detailed scheduled of charges will be provided at the time of account opening. Also, in case of any amendment to the schedule of charges, the same shall be communicated by the Bank through the notice board displayed in the branch and bank’s website or through leaflet made available at the branches.
• Pass book will be given to all SB account holders. If a customer wants statement of accounts, it will be issued on specific request and on payment of necessary charges.
• Charges for issuing duplicate passbook with latest entry: Rs. 119+ GST per occasion.
• Issuance of Cheque book charges :- 25 Cheque leaves are allowed free in SB a/cs in a half year in all branches, thereafter Rs. 5/- per cheque leaf is to be recovered from customers.
• No ECS charges to be levied in respect of income tax refund orders as per extant RBI directives. RBI charges if applicable shall also be loaded to above charges.

• Cheque Return unpaid Charges (excl. GST):-

• Guidelines on registration and execution of Standing Instructions/Direct debits, implications of non execution of instructions for want of funds, etc:- For execution of standing instructions:

  Charges for insufficiency of funds to carry out standing instructions: Rs.100/- + GST per occasion.

  
  For registration of standing instructions:
  • Same branch and in same name: Charges per transaction is Nil. 
  • Same branch but credit to be given to a different name : Individual: Rs. 25/- per transaction & for others: Rs.52/- per transaction
  • Charges for insufficiency of funds to carry out standing instructions: Rs.52/- per occasion.

• Dormant/Inoperative accounts:

  • All accounts which are not operated upon for a continuous period of over 2 years shall be treated as inoperative (dormant) accounts.
    In case of term deposits the 2 year shall be reckoned after the date of maturity.
    A savings as well as current account should be treated as inoperative / dormant if there are no transactions (i.e. no credit or debit other than crediting of periodic interest or debiting of service charges) in the account for over a period of two years.
    The saving bank account can be treated as inoperative account only after two years from the date of the last credit entry of the interest on Fixed Deposit account and if there are no other operations in the account during the period.

    For non-maintenance of minimum balance, incidental charges are not to be levied to in-operative accounts.

    For crediting cheques/Direct Benefit Transfer/Electronic Benefit Transfer/Scholarships for students etc., into accounts /Accounts with zero balance opened for the beneficiaries under various Central/State Government schemes, such accounts are not to be classified as dormant/inoperative due to non-operation of the account for over two years.

• Disclosure of Information:

  The bank may disclose information about customer’s account, if required or permitted by law, rule or regulations, or at the request of any public or regulatory authority or if such disclosure is required for the purpose of preventing frauds, or in public interest, without specific consent of the account holder/s.

• Alerts: Facility for SMS:

  • All Domestic SMS Alerts charges per SMS = ₹0.80 + GST per SMS per quarter (Max. ₹ 20 + GST per quarter)
  • International SMS Alerts = Rs. 2 + GST per SMS.
• All Policies such as Deposit Policy, Policy on Unclaimed Deposits, Policy on collection of Domestic Cheques/Instruments, Grievance Redressal Policy, and Compensation Policy & Code of Commitments to customers should be available at the branches and also in the public domain.
• The DICGC insures all deposits such as Savings, Fixed, Current, Recurring Deposit etc.