TD Account

1. TD Account

2. Opening of TD Account • Types of account • Single adult • Two adults jointly • Minor- 10 years • Guardian on behalf of minor • Mode of deposit- Cash or cheque • Subsequent deposit & withdrawal – not allowed.

3. Rate of Interest For Time Deposit Account-w.e.f. 01-12-2011 • Limit: • Minimum- Rs.200/- and in multiple of Rs.200/-. • Maximum – no limit. • Interest rate • 1 year Time Deposit Account 7.7 % upto 31.03.12 • 2 year Time Deposit Account 7.8 % upto 31.03.12 • 3 year Time Deposit Account 8.0 % upto 31.03.12 • 5 year Time Deposit Account 8.3 % upto 31.03.12

4. Interest rate w.e.f 01.04.2012 1 year Time Deposit Account 8.2 % 2 year Time Deposit Account 8.3 % 3 year Time Deposit Account 8.4 % 5 year Time Deposit Account 8.5 %

5. Payment of Interest • Interest will be payable after completion of one year from the date of opening of the account. • Depositor should submit filled in SB-7 form and along with PB. • Issue SB-28 receipt • BPM should send the PB and SB-7 to AO Withdrawal of SB/RD procedure is to be followed

6. Exercise 3.1

7. Procedure for opening of Time Deposit Account • SB-3 and Pay in slip(SB-103) to be filled in by the depositor • The following documents are compulsory • 3 copies of recent photograph • Identity Proof • Address Proof

8. Opening of New Time Deposit Account(Procedure) • Procedure same as opening of new Savings Bank Account except no introduction is necessary. • If opened by cheque, account will be opened on realization of cheque.

10. Opening of TD account through SAS agent • It should be authorized by the competent authority to accept the deposit • If it is authorised,BPM will issue SB 26 receipt to the agent • Pass book will be delivered to the agent on receipt from the AO • Agent will be paid 0.5% commission

11. Exercise 3.2

12. Time Deposit Account--- PMC/PMI, etc. • Interest is compounded quarterly and payable annually. • Premature closure allowed • After six months within 1 year - Simple interest at SB rate • After 1 year -Reduced rate of interest • Post - maturity interest at SB rate of interest for 2 years.

13. Premature closure of TD A/c • After six months within one year –Simple interest at SB rate • Interest shall be paid for completed years and month • Shall carry interest 1% less than the rate specified for completed years TD from the date of deposit to the date of closure • Completed Years as per table • Completed Months as per formula

14. Final closure on maturity • All Head and Sub Postmasters can close the account independently • Procedure is same as in the case of Savings Account • Interest due, if any, determined • Post Maturity Interest if any to be calculated on amount due.

15. Procedure for PMC/Closure on Maturity • Obtain SB-7/7(a) duly filled on application portion • Verify Signature & balance • Issue SB-28 receipt • Forward PB, SB-7/7(a) to AO • On receipt of PB & passed SB-7, obtain acquittance of depositor and effect payment • A remark “ A/c closed” on all pages in PB, TD journal, SS book

16. Preparation of TD Journal • Entry of opening of account/transaction made in existing account should be made in the BO TD 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.

17. Preparation of TD Journal • Note the BAT • Note DLT • Initial the appropriate column

18. Incentive/Commission for GDS • For the deposits made under SB/TD schemes BPMs can earn Commission/Incentive • For SB, Commission may be claimed for each financial year • Rate of commission is 2% on net deposit • Procedure to calculate net deposit is shown in next slide

19. Calculation of net deposit • Deposits made from April to February should be taken • Deposits made in March not to be counted • Withdrawals made from 1st April to 31st March should be deducted • Withdrawals made from A.O. should be deducted

20. Calculation of net deposit • Deposits made at A.O. should not be taken into account • Amount of interest should not be treated as deposit • 2% of the net deposit arrived as said above may be claimed as commission • Claim should be preferred in the month of April every year

21. Payment of SB Commission • The Commission bill may be forwarded to A.O. • A.O. will verify and sanction the bill • Commission amount can be charged at BO with separate head in BODA as “Payment of Commission to BPM”.

22. Rate of Commission - TD

23. Procedure to claim TD commission • Claim may be preferred once in a month • Bill should be submitted to A.O. for the accounts opened during the month on 1st of next month • Accounts opened through agents are not eligible to claim commission • No commission for TD re-deposits • Forward commission bill to A.O. duly invoiced in BODA

24. Payment of TD Commission • A.O. will verify and sanction the bill • Commission amount can be charged at BO with separate head in BODA as “Payment of Commission to BPM”. • The charged bill should be sent back to A.O.

25. Payment of TD Commission • Need not wait up to the end of financial year to claim commission on TD deposits

26. Thank you