PUNJAB & SIND BANK THE SALIENT FEATURES OF PSB FLOATING RATE FIXED DEPOSIT SCHEME IS ENUMERATED AS UNDER:-

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1 प ज ब ए ड स ध ब क PUNJAB & SIND BANK (भ रत सरक र क उप म / Government of India Undertaking) (.क क. य जन एव वक स वभ ग, ब क ह उस, प चम तल, 21 - र ज ल स, नई द ल ) H.O. Planning & Development Department, 5 th Floor, Bank House, 21 Rajendra Place, New Delhi Tel. No: & ; Fax Number: ; ho.pd@psb.org.in Circular No : 2885 Date: Code No. of the Department : H-9013 Number of pages of Circular : 5 Running circular No of the Bank : / TO ALL BRANCHES AND CONTROLLING OFFICES Reg: PSB FLOATING RATE FIXED DEPOSIT SCHEME In the present Banking scenario, knowing the customers along with his needs is of paramount importance. Towards ensuring customer s glee, our Bank has already made a remarkable achievement by offering a number of customer friendly products. To Cater to the need of the customers, who want to go along the changes in financial sector, PSB FLOATING RATE FIXED DEPOSIT SCHEME has been formulated. Under the Scheme, the rate of interest payable on the FD will automatically change with the change in Fixed Deposit Rate made by the Bank from time to time. The changes in Rate of Interest will be made applicable automatically, without presentment of the FDR, by the depositor. THE SALIENT FEATURES OF PSB FLOATING RATE FIXED DEPOSIT SCHEME IS ENUMERATED AS UNDER:- 1. Applicability The scheme will be applicable in CBS branches only. 2. Eligibility An individual (singly or jointly), including a minor who has attained the age of 10 years in his own name on giving proof of age by his guardian or any reliable source or through his/her natural / legal guardian, proprietorship / partnership firm, club, association, company/corporate body, public/commercial organization, Hindu undivided family (HUF), Municipality, Panchayat, Govt. and Quasi-Govt. body, society, trust, religious, charitable and educational institution can open account under the scheme. The accounts in the name of minor, below the age of 10 years will be opened under guardianship. 3. Amount of Deposit The Fixed Deposit can be opened with a minimum deposit of Rs. 1000/- or in multiples thereof. However, acceptance of FDRs of Rs. 5 Crores and above shall be strictly subject to the approval of HO RMD Deptt.

2 4. Period of Deposit For any period from 07 days to maximum 10 years, 5. Issue of Term Deposit Receipt As the rate of interest payable on the FD made under the scheme may change during the currency of FD and the maturity value cannot be pre-calculated. However, rate of interest and maturity value as per the relevant rate applicable on the date of making the FD will be mentioned in the field meant for the purposes in the present FDR form, with explanatory note Subject to change in the rate of interest from time to time during currency of the FD. Till the new FD receipt under the scheme is made available from Printing & Stationery Deptt., a rubber stamp bearing the Name of the Scheme, and explanatory note stated above be invariably affixed on the existing FDRs. 6. Rate of Interest: - i) During currency of Fixed Deposit, the interest rate changes, made by the Bank, will be applicable automatically, without presentment of FDR by the depositor, from the effective dates of such changes. It can be illustrated as under:- suppose a depositor has opened a PSB Floating Rate Fixed Deposit account for Rs /- on for 5 years, maturing on At the time of opening of account under this scheme, the applicable rate of interest, say, is 7.75%. Bank subsequently revises the rate of interest from to 9% and from to 7% for a 5-year maturity period. On maturity, depositor will get the rate of from to 9% from to and 7%. ii) The interest shall be compounded on quarterly basis and will be payable, along with principal, on maturity of deposit, as per bank guidelines. iii) At the time of payment of FDR, customer will be required to submit the duly discharged FDR in original, or duplicate FDR, (issued in lieu of original one) if any. 7.Premature withdrawal of Deposit If any depositor desires to withdraw the deposit before maturity, Bank may at its discretion repay the deposit with up to date interest. In such cases, following guidelines will be followed: a) Part withdrawal will be treated as pre-mature payment of the FD and there would be issuance of a fresh FD for residual amount for the remaining period. b) Term deposits of less than Rs. 5 Crores, i) Where deposit remains with the bank up to 5 years, interest payable will be 1% minus the rate that remained effective from time to time for the period FD has actually run.

3 ii) Where deposit remains with the bank above 5 years, interest payable will be 0.5% minus the rate that remained effective from time to time for the period FD has actually run. b) Term deposits of Rs. 5 Crores and above (For accepting deposits of Rs. 5 Crores and above, prior approval of HO RMD, is required), In case of pre-mature cancellation of FD of Rs. 5 Crores and above, rate of interest that remained effective from time to time for the period FD has actually run will be paid, without making any reduction. Note: - FDRS UNDER DRI SHALL NOT BE ISSUED UNDER THIS SCHEME. Staff members and Senior citizens (Except their term deposits if any, accepted by the bank on DRI basis) and instances of death of the depositors before maturity, would continue to be exempted from the levy of penal interest. Following illustrations would give better understanding of the guidelines, in respect of premature withdrawal, to the field functionaries:- Contracted period of Deposit accepted or renewed Premature cancellation sought after completion of term Rate of interest applicable for related tenor of term deposit Rate of interest payable after penal cut of interest Rs. 5 lacs for % on Three years (suppose Rate of interest revised two times for three years slab) to =8.25% to =8.50% to =.9.00% Rates of interest payable for the period the deposit has actually run from the date of FDR issued and subsequent revision of interest rates, if any, minus penalty of 1%). Payment of interest after panel cut shall be as under: to = =7.25% to = =7.50% to = =8.00% Rs. 20 lacs for % on Five years (suppose Rate of interest revised three times for five years slab) to =8.25% to =8.50% to =.8.25% to =9.00% Rates of interest payable for the period the deposit has actually run from the date of FDR issued and subsequent revision of interest rates, if any, minus penalty of 0.5%). Payment of interest after panel cut shall be as under:-

4 i.e., to = =7.75% to = =8.00% to = =7.75% to = =8.50% 8. At Par Collection/Payment of FDR: (a)payment of FDR ON MATURITY: All deposit receipts shall be payable At Par on maturity at all CBS branches provided the customer is having Saving Bank Account with the Bank and proceed will be credited in that account only. (b)payment / Other Transactions related to FDR BEFORE ITS DUE DATE: In case, customer requires any transaction in respect of the FDR other than its payment on due date, it would be entertained only by the Base Branch i.e. the branch which has Issued this FDR. To illustrate, Loans/Overdraft against FD/ Change of Base Branch i.e., transfer of account to any other CBS branch/payment of FDR/Cancellation of FDR before maturity, etc., such type of requests, if received from customers, shall be entertained only at the issuing (BASE) Branch only. (c)collection of FDRs: Collection of FDRs (on / before maturity) be undertaken At Par at all CBS branches. 9. DEMAND LOAN / OVERDRAFT FACILITY: i) Depositors will be eligible for taking Demand Loan / Overdraft facility, as per bank scheme, against the FD made under the scheme. However, for taking Overdraft facility, the FD should be for a minimum of Rs /. ii) The facility as per (i) above can be allowed on written request made by the depositor on completion of Bank s formalities, as circulated by Bank under the scheme Advances Against Bank s Deposit. (iii) The rate of interest chargeable on OD/DL will also change with change in rate of interest payable on FD from time to time. OD/DL is being permitted to general public & staff member including decided by HO Advances Deptt. over and above the deposit rate payable on FDR. (iv) The margin requirements on advances against the FD made under the scheme will be as prescribed by the HO Advances Deptt. from time to time. On maturity, the loan/od liability may be adjusted from the proceeds of FD and residual proceeds may be accounted for as per depositors mandate, if any. In absence of mandate, the proceeds will remain in ODFD category.

5 THE FACILITY OF OVERDRAFT SHALL NOT BE AVAILABLE IN THE ACCOUNT OPENED IN THE NAME OF ILLITERATE OR A BLIND PERSON. 10. Interest Certificate: Interest Certificate may be issued to the depositor in respect of the amount actually credited/accrued in the depositor s account during the year. A noting may be recorded in the respective account for the amount and date of interest certificates issued. 11. Tax Deduction at source: As per instructions issued by HO Accounts & Audit Deptt. from time to time, branches are required to deduct income tax (if applicable) at the time of payment or credit of interest to the depositor s account. The tax due must be deducted at source either to the debit of Fixed Deposit Account itself or to the debit of depositor s Saving Fund/Current Account as per the mandate held on record. Where the tax is deducted from FD Account, the same may be noted in the respective account and future interest is to be allowed on reduced balance (net of TDS). Form No.16A must be sent to the depositor under Registered Cover as per prevailing instructions issued by HO Accounts & Audit Deptt. (These guidelines shall be subject to any modification as circularized by HO from time to time). The scheme is quite favorable to the customers. The branches are advised to popularize the scheme among the customers and mobilize maximum deposits. Zonal Managers are advised to ensure implementation of the scheme in the working under their jurisdiction. (Jagmohan Singh) Deputy General Manager (P&D)