Standard Chartered Bank – Model Policy on Bank Deposits
This policy document on deposits outlines the guiding principles in respect of formulation of various deposit products offered by the Bank and terms and conditions governing the conduct of the account. The document recognizes the rights of depositors and aims at dissemination of information with regard to various aspects of acceptance of deposits from the members of the public, conduct and operations of various deposits accounts, payment of interest on various deposit accounts, closure of deposit accounts, method of disposal of deposits of deceased depositors and other related items for the benefit of customers. It is expected that this document will impart greater transparency in dealing with the individual customers and create awareness among customers of their rights. The ultimate objective is that the customer will get services they are rightfully entitled to receive without demand..
While adopting this policy, the bank reiterates its commitments to individual customers outlined in Bankers’ Fair Practice Code of Indian Banks’ Association. This document is a broad framework under which the rights of common depositors are recognized. Detailed operational instructions on various deposit schemes and related services will be issued from time to time.
Types of Deposit Accounts
The major deposit products offered by Standard Chartered Bank can be categorized broadly into the following types.
- Demand deposits" means a deposit received by the Bank which is withdrawable on demand.
- Savings deposits" means a form of demand deposit which is subject to restrictions as to the number of withdrawals as also the amounts of withdrawals permitted by the Bank during any specified period.
- Current Account" means a form of demand deposit wherefrom withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount and will also include other deposit accounts which are neither Savings Deposit nor Term Deposit.
- Term deposit" means a deposit received by the Bank for a fixed period withdrawable only after the expiry of the fixed period and include deposits such as Simple Term Deposits, Re-investment Term Deposit,2n1 Deposits and Floating Rate Deposits.
Account Opening and Operation of Deposit Accounts
- The Bank before opening any deposit account will carry out due diligence as required under "Know Your Customer" (KYC) guidelines issued by RBI and or such other norms or procedures adopted by the Bank. If the decision to open an account of a prospective depositor requires clearance at a higher level, reasons for any delay in opening of the account will be informed to him and the final decision of the Bank will be conveyed at the earliest to him.
- The account opening forms and other material would be provided to the prospective depositor by the Bank. The bank will also provide details of information to be furnished and documents to be produced for verification and or for record, it is expected of the Bank official opening the account, to explain the procedural formalities and provide necessary clarifications sought by the prospective depositor when he approaches for opening a deposit account.
- For deposit products like Savings Bank Account and Current Deposit Account, the Bank will normally stipulate certain minimum balances to be maintained as part of terms and conditions governing operation of such accounts. Failure to maintain minimum balance in the account will attract levy of charges as specified by the Bank from time to time. For Saving Bank Account the Bank may also place restrictions on number of transactions, cash withdrawals, etc., for given period. Similarly, the Bank may specify charges for issue of cheque books, additional statement of accounts, duplicate pass book, folio charges, etc. All such details, regarding terms and conditions for operation of the accounts and schedule of charges for various services provided will be communicated to the prospective depositor while opening the account.
- Savings Bank Accounts can be opened for eligible person/persons and certain organizations/agencies (as advised by Reserve Bank of India (RBI) from time to time).
- Current Accounts can be opened by individuals/partnership firms/Private and Public Limited Companies/HUFs/Specified Associates/Societies/Trusts, etc.
- Term Deposits Accounts can be opened by individuals/partnership firms/Private and Public Limited Companies/HUFs/Specified Associates/Societies/Trusts, etc.
- The due diligence process, while opening a deposit account will involve satisfying about the identity of the person, verification of address, satisfying about his occupation and source of income. Obtaining introduction of the prospective depositor from a person acceptable to the Bank and obtaining recent photograph of the person/s opening/operating the account are part of due diligence process.
- In addition to the due diligence requirements, under KYC norms the Bank is required by law to obtain Permanent Account Number (PAN) or General Index Register (GIR) Number or alternatively declaration in Form No. 60 or 61 as specified under the Income Tax Act/Rules.
- Deposit accounts can be opened by an individual in his own name (status : known as account in single name) or by more than one individual in their own names (status : known as Joint Account). Savings Bank Account can also be opened by a minor jointly with natural guardian or with mother as the guardian (Status : known as Minor’s Account).
- Operation of Joint Account - The Joint Account opened by more than one individual can be operated by single individual or by more than one individual jointly. The mandate for operating the account can be modified with the consent of all account holders. The Savings Bank Account and Term Deposit opened by minor jointly with natural guardian/guardian can be operated by natural guardian only.
- The joint account holders can give any of the following mandates for the disposal of balance in the above accounts:
Either or Survivor : If the account is held by two individuals say, A & B, the final balance along with interest, if applicable, will be paid to survivor on death of anyone of the account holders.
- Anyone or Survivor/s : If the account is held by more than two individuals say, A, B and C, the final balance along with interest, if applicable, will be paid to the survivor on death of any two account holders.
This mandate can be modified by the consent of all the account The holders.
For Term Deposits the above mandates will be applicable to or become operational only on or after the date of maturity. of term deposits.
This mandate can be modified by the consent of all the account holders.
- At the request of the depositor, the Bank will register mandate/power of attorney given by him authorizing another person to operate the account on his behalf.
- The term deposit account holders at the time of placing their deposits can give instructions with regard to closure of deposit account or renewal of deposit for further period on the date of maturity.
- Nomination facility is available on all deposit accounts opened by the individuals. Nomination is also available to a sole proprietory concern account. Nomination can be made in favour of one individual only. Nomination so made can be cancelled or changed by the account holder/s any time. While making nomination, cancellation or change thereof, it is required to be witnessed by a third party. Nomination can be modified by the consent of account holder/s. Nomination can be made in favour of a minor also.
- Bank recommends that all depositors avail nomination facility. The nominee, in the event of death of the depositor/s, would receive the balance outstanding in the account as a trustee of legal heirs. The depositor will be informed of the advantages of the nomination facility while opening a deposit account.
- A statement of account will be provided by the Bank to Savings Bank as well as Current Deposit Account Holders periodically as per terms and conditions of opening of the account.
Interest shall be paid on saving account at the rate specified by Reserve Bank of India directive from time to time. However, term deposit interest rates are decided by the Bank within the general guidelines issued by the Reserve Bank of India from time to time.
In terms of Reserve Bank of India directives, interest shall be calculated at quarterly intervals on term deposits and paid at the rate decided by the Bank depending upon the period of deposits. In case of monthly deposit scheme, the interest shall be calculated for the quarter and paid monthly at discounted value. The interest on term deposits is calculated by the Bank in accordance with the formulae and conventions advised by Indian Banks’ Association.
The rate of interest on deposits will be prominently displayed in the branch premises. Changes, if any, with regard to the deposit schemes and other related services shall also be communicated upfront and shall be prominently displayed.
The Bank has statutory obligation to deduct tax at source if the total interest paid/payable on all term deposits held by a person exceeds the amount specified under the Income Tax Act. The Bank will issue a tax deduction certificate (TDS Certificate) for the amount of tax deducted. The depositor, if entitled to exemption from TDS can submit declaration in the prescribed format at the beginning of every financial year.
For Non Resident External (NRE) Rupee Term Deposit, the rates are based on margin specified by RBI over corresponding LIBOR Swap rate of US Dollar on the last working day of the previous month. For Foreign Currency Non Resident (FCNR(B)) deposits the rates are based on margin specified by RBI over corresponding LIBOR Swap rate for individual currency on the last working day of the previous month. These interest rates are revised in the beginning of each month or as and when RBI changes the margin for the above deposits.
Minimum tenors on NRE and FCNR (B) Term Deposits will be in accordance with the prevailing RBI rules at any point of time. Interest on Non Resident External (NRE) Deposits and Foreign Currency Non Resident Term Deposits (FCNR (B)) is currently not subject to tax deduction at source as per the prevailing Reserve Bank of India guidelines and the Income Tax Act.
The minor can open Savings Bank Account& Term Deposit Account and the same can be operated by the natural guardian. The account can also be opened jointly.
On attaining majority, the right of the guardian to operate the account ceases and the bank will take necessary steps to enable the operation of the account by the erstwhile minor either singly or as a joint account.
Account of Special (Illiterate/Blind/ Incapacitated) Person
The Bank may at its discretion open deposit accounts for special person. The account of such person may be opened provided he/she calls on the Bank personally. The account opening will be done in the presence of 2 witnesses one of whom is known to the depositor and the other being a Bank official. At the time of withdrawal/ repayment of deposit amount and/or interest, the account holder should affix his/her thumb impression or mark in the presence of the authorized officer who should verify the identity of the person. In the case of visually challenged customer the account will be opened under joint operation mandate with a customer who is not visually challenged. The Bank will explain the need for proper care and safe keeping of the passbook etc. given to the account holder. The Bank official shall explain the terms and conditions governing the account to the depositor. Normally, no cheque book is provided for such Saving Bank Accounts.
Addition or Deletion of The Name/s of Joint Account Holders
The bank may at the request of all the joint account holders allow addition or deletion of name/s of joint account holder/s if the circumstances so warrant or allow an individual depositor to add the name of another person as a joint account holder.
The customer information collected from the customers shall not be used for cross selling of services or products by the Bank, their subsidiaries and affiliates. If the Bank proposes to use such information, it should be strictly with the consent of the accountholder.
Secrecy of Customer’s Accounts
The Bank shall not disclose details/particulars of the customer’s account to a third person or party without the expressed or implied consent from the customer. However, there are some exceptions, viz. disclosure of information under compulsion of law, where there is a duty to public to disclose and where interest of the Bank requires disclosure.
Premature Withdrawal of Term Deposit
Unless otherwise indicated at the time of account opening, the Bank will allow withdrawal of term deposit before completion of the period of the deposit agreed upon at the time of placing the deposit.
For these deposits, interest for the period it has remained with the bank will be paid at the rate applicable to the period for which the deposit remained with the bank and not at the contracted rate. Additionally there would be a penalty on pre-mature withdrawal of Term Deposit.
In case of term deposit accounts held jointly with Either or Survivor or Former or Survivor mandate, in the event of death of any joint holder, premature termination of term deposits would be allowed as per the mandate signed by all the joint holders to this effect and provided to the Bank.
Premature partial withdrawal is allowed for Term Deposits booked under preferential rates. In case of partial withdrawal the rate applicable on the residual amount shall change. The applicable rate shall be as per the published rates on the original booking date for the residual amount and tenor combination.
For NRE Term Deposit and FCNR (B) Term Deposit, there would be no interest payment in case the withdrawal happens before the minimum tenor (1 year). For tenors greater than 1 year, interest would be paid on the term completed as per the prevailing interest rate slabs for that tenor.
Additionally there will a penal interest rate deduction of 1% on the interest rate to be paid
Premature Renewal of Term Deposit
In case the depositor desires to renew the deposit by seeking premature closure of an existing term deposit account, the bank will permit the renewal at the applicable rate on the date of renewal. While prematurely closing a deposit for the purpose of renewal, interest on the deposit for the period it has remained with the bank will be paid at the rate applicable to the period for which the deposit remained with the bank and not at the contracted rate. Additionally there would be a penalty on pre-mature renewal of Term Deposit.
The Bank shall declare their penal interest rates policy for premature withdrawal of term deposit. The Bank shall make depositors aware of the applicable rate along with the deposit rate.
Additionally there will a penal interest rate deduction of 1% on the interest rate to be paid.
Renewal of Overdue Term Deposits
When a term deposit is renewed on maturity, on renewed deposit interest rate for the period specified by the depositor as applicable on the date of maturity would be applied. If request for renewal is received after the date of maturity, such overdue deposits will be renewed with effect from the date of maturity at interest rate applicable as on the due date, provided such request is received within 14 days from the date of maturity.
In respect of overdue deposits renewed after 14 days from the date of maturity, interest for the overdue period will be paid at the applicable savings rate of deposit.
Advances Against Deposits
The Bank may consider request of the depositor/s for loan/overdraft facility against term deposits duly discharged by the depositor/s on execution of necessary security documents. In case of NRE Term Deposits and FCNR (B) Term Deposits, the upper limits on lent amounts as recommended by the Reserve Bank of India from time to time would be applicable.
Settlement of Dues in Deceased Deposit Account
- If the depositor has registered nomination with the Bank; - the balance outstanding in the account of the deceased depositor will be transferred to the account of/paid to the nominee after the Bank satisfies about the identity of the nominee and other necessary details. , etc.
- The above procedure will be followed even in respect of a joint account where nomination is registered with the Bank.
- In a joint deposit account, when one of the joint account holders dies, the Bank is required to make payment jointly to the legal heirs of the deceased person and the surviving depositor(s). However, if the joint account holders had given mandate for disposal of the balance in the account in the forms such as "either or survivor, former/latter or survivor, anyone of survivors or survivor; etc., the payment will be made as per the mandate to avoid delays in production of legal papers by the heirs of the deceased.
- In the absence of nomination and when there are no disputes among the claimants, the Bank will pay the amount outstanding in the account of deceased person against joint application and indemnity by all legal heirs or the person mandated by the legal heirs to receive the payment on their behalf without insisting on legal documents up to the limit approved by the bank’s board. This is to ensure that the common depositors are not put hardship on account of delays in completing legal formalities.
Interest Payable on Term Deposit in Deceased Account
In the event of death of the depositor before the date of maturity of deposit and amount of the deposit is claimed after the date of maturity, the Bank shall pay interest at the contracted rate till the date of maturity. From the date of maturity to the date of payment, the Bank shall pay savings rate as simple interest at the applicable rate obtaining on the date of maturity, for the period for which the deposit remained with the Bank beyond the date of maturity; as per the Bank’s policy in this regard. However, in the case of death of the depositor after the date of maturity of the deposit, the bank shall pay interest at savings deposit rate obtaining on the date of maturity from the date of maturity till the date of payment.
Insurance Cover for Deposits
All bank deposits are covered under the insurance scheme offered by Deposit Insurance and Credit Guarantee Corporation of India (DICGC) subject to certain limits and conditions.
Stop Payment Facility
The Bank will accept stop payment instruction from the depositors in respect of cheques issued by them. Charges, as specified, will be recovered.
Accounts which are not operated for a considerable period of time will be transferred to a separate dormant/inoperative account status in the interest of the depositor as well as the Bank. The depositor will be informed of charges, if any, which the Bank will levy on dormant/inoperative accounts. The depositor can request the Bank to activate the account for operating it by submitting the requisite documents.
Safe Deposit Lockers
This facility is not offered through all bank branches and wherever the facility is offered, allotment of safe deposit vault will be subject to availability and compliance with other terms and conditions attached to the service. Safe deposit lockers may be hired by an individual (being not a minor) singly or jointly with another individual(s), HUFs, firms, limited companies, associates, societies, trusts etc. Nomination facility is available to individual(s) holding the lockers singly or jointly. In respect of lockers held in joint names, only one up to two nominees can be appointed. Joint locker holders can give mandate for access to the lockers in the event of death of one of the holders on the lines similar to those for deposit accounts. In the absence of nomination or mandate for disposal of contents of lockers, the bank will release the contents of locker to the legal heirs against indemnity and on submission of the requisite documents.
Deceased Depositor’s Policy
The Bank has a comprehensive policy of Deceased Depositors . For details on the Deceased Depositor’s Policy , please here
- Deceased depositors policy
Redressal of Complaints and Grievances
Depositors having any complaint/grievance with regard to services rendered by the Bank has a right to approach authority(ies) designated by the Bank for handling customer complaint/grievances. The details of the internal set up for redressal of complaints/grievances will be displayed in the branch premises. The branch officials shall provide all required information regarding procedure for lodging the complaint. The same details are available in our website. In case the depositor does not get response from the Bank within 30 days from date of complaint or he is not satisfied with the response received from the Bank, he has a right to approach Banking Ombudsman appointed by the Reserve Bank of India. More details on Banking Ombudsman Scheme are available on http://www.bankingombudsman.rbi.org
Version : July 2016
Standard Chartered Bank (the “Bank”) is committed to maintaining a culture of the highest ethics and integrity, and in compliance with all applicable law, regulation and internal policy. As part of this commitment, the Bank has a ‘Speaking Up’ programme through which genuine concerns in this regard can be raised. Members of the public can securely raise Speaking Up concerns through this hyperlink, which is hosted on behalf of the Bank by a third party ‘InTouch’. Examples of concerns that can be raised through this website are concerns that relate to accounting, internal accounting controls or auditing matters and concerns relating to bribery or banking and financial crime. Concerns received will be forwarded to the Bank’s investigations team for review. Complaints relating to SCB banking services should not be raised through this site in the first instance, but through the SCB branch network, contact centres, Relationship Managers or the ‘Contact Us’ webpage.