RECURRING DEPOSITACCOUNT

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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/-.

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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.

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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)

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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

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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

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Opening of a/c

Exercise 2.1 Opening of RD a/c

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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

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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.

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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.

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Rule No.13

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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

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

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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)

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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 18

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

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RD LOAN/WITHDRAWAL

Exercise 2.7

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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 21

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

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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 23

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.

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RD Journal

• Note the BAT

• Note DLT

• Initial the appropriate column

• The DNT should be entered when transaction happens in the account subsequently

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