RECURRING DEPOSIT ACCOUNT

1. RECURRING DEPOSITACCOUNT

2. 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/-.

3. RD- opening of a/c… Maximum - no limit Maturity period 5 years. For accounts opened on or after 01-12-2011 maturity 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 by guardian on behalf of minor. Two adults jointly can open Account.

4. 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)

5. Opening of account (RD) • On receipt of new a/c pass book from AO, it should be given to depositor by collecting back SB-26 receipt • Acquittance for receipt of PB by depositor obtained on reverse of SB-26 • It 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

8. 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 be obtained and sent to DO through concerned sub divisional Inspector for necessary action • If it is authorised ,the transactions should be through cheque only

9. Opening of a/c Exercise 2.1 Opening of RD a/c

10. RD- subsequent deposit • Monthly installment can be deposited on any day before 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/- per month will be charged and proportionate for other Denominations

11. RD- subsequent deposit • If installment paid in advance for 6 month or more , rebate will be paid at the following rate. • Dn Rs. 10/- 6 month Re.1/- 12 month Rs.4/- • Proportionate for other Denominations.

12. 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 & counterfoil to depositor.

13. Rule No.

15. 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

16. Exercise 2.2 to 2.6 on subsequent dep., default & rebate

17. 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)

18. RD-interim withdrawal Interest on withdrawal is charged at 5year TD rate 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 it should be Multiple of Rs.5 Amount of withdrawal should be divisible both by 5 as well as number of installment Number of installment shall not exceed number of months remaining for maturity

19. 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 receipt

20. RD LOAN/WITHDRAWAL Exercise 2.7

21. 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

22. 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

23. 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

24. RD Journal • Entry of opening of account/transaction made in existing account should be made in the BO RD Journal. • The column of account number should be left 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 INK for new a/c.

25. RD Journal • Note the BAT • Note DLT • Initial the appropriate column • The DNT should be entered when transaction happens in the account subsequently

27. Thank you