A PROJECT REPORT ON

RETAIL BANKING

IN

BANK OF INDIA

PREPARED BY

AJAY V. ANGARKHE

T.Y. B.Com (BANKING & INSURANCE)

FIFTH SEMESTER

UNDER THE GUIDANCE OF

PROF. ABHIJIT DESHPANDE

SUBMITTED TO

UNIVERSITY OF MUMBAI

DATE OF SUBMISSION

28 /09/2008

ACADEMIC YEAR

2008 - 2009

VIDYA PRASARAK MANDAL’S THANE (W)

 K.G.JOSHI COLLEGE OF ARTS

N.G.BEDEKAR COLLEGE OF COMMERCE

CHENDANI BUNDER ROAD,

THANE (w) 400601

DECLARATION

I, Mr. AJAY VASANT ANGARKHE student of Third Year Bachelor of Banking &
Insurance (T.Y B.com B & I) Semester Vth, here by declared that I have completed
this project on RETAIL BANK DEPOSITS in BANK OF INDIA in the academic year
2008-2009. The information submitted is true & original to the best of my
knowledge & belief.

Signature of Student

_________________

AJAY V. ANGARKHE
 ACKNOWLEDGEMENT

This acknowledgement is a small way of expressing my gratitude to all those

people who have been so supportive in my endeavor.

I sincerely acknowledge the valuable guidance & suggestions given by my

project guides Prof. ABHIJIT DESHPANDE Without their valuable guidance it would
have been impossible to complete this project successfully.

I would like to thank officers of BANK OF INDIA for providing me valuable

information required by this project. I am privileged to thank Mr. VILAS KARANDE(Chief
-Manager ) & Mr. VIJAY JADHAV(Marketing Associate) for giving there valuable time
to me for doing this project.

I would also like to thank various suggestions & comments that were given by my
friends, my family members, which helped me in completing this project in a better way.

THANKING YOU

INTRODUCTORY EXPLANATION
1 INTRODUCTION IN PROJECT STUDY :-

This project comprises information about retail deposits facility given by the bank
to the different persons such as business man, salaried persons, etc. It also comprises
of various deposits, their rate of interest , eligibility for applicant, features of various
schemes.

2 AIMS & OBJECTIVE IN DOING THIS PROJECT :-

Accepting deposits is the banks one of the major function, as banking &
insurance student we required to know what kinds of deposits facility given by the bank
to different people. So because of these reason I choose this topic for my project.

3 METHOD OF DATA COLLECTION :-

 Primary data was collected with the help of books covering topic of retail bank
 Secondary data was collected with the help of officials of banks.
 Data was also collected from some relevant sites, Brochures & pamphlets of
banks covering the relevant information.
 INTRODUCTION TO BANK

A bank is an institution that deals with money and credit. Different people
understand the meaning of a bank in different ways. For a common man
bank means a storehouse where money is stored; for a business man it is a
financial institution and for a day today customer it is an institution where he
can deposit his savings.

In reality banks are service organisation selling banking services.

Banks play an important role in the economy of any country as they hold the
savings of the public. Provide means of payment for goods and services and
provide necessary finance for the development of business and trade.

Thus bank is a link in the flow of funds from savers to the users. Hence they
should render an efficient customer service in order to retain the present
customers and also to attract the potential customers.

In the past the banks did not find any attraction in the Indian economy
because of the low level of economic activities and little business prospects.
Today we find positive changes in the National business development policy.
Earlier, the money lenders had a strong hold over the rural population. This
resulted in the exploitation of small and marginal savers. The private sector
banks failed in serving the society. This resulted in the nationalisation of 14
commercial banks in 1969.

Nationalisation of commercial banks paved way for the development of

Indian economy and channelized financial resources for the upliftment of
weaker sections in the society. In 1980, the government was induced to
nationalise more commercial banks. There was a basic change in the
banking concept with a beginning in the Nationalisation of big Commercial
banks.

The involvement of public sector banks transformed the Indian economy. It

was felt that bankers review their services not only as financial intermediary
but also a pacesetter.

Banking plays a pivotal role in the efficient utilisation of national resources

through lending, investing and transferring funds through the nation and
even between the countries. Obviously, such role of banking is indispensable
in a developing country like ours, where there are many problems like
poverty, scarcity of capital, lack of entrepreneurship etc. Moreover, there are
inter-regional and inter-sectoral disparities. There is an unequal distribution
of wealth. Banks, especially, public sector banks, work as catalyst agents of
economic growth and prosperity by following the right kind of policies in
their working depending upon the socio-economic conditions prevailing in a
country.

In our planned economy Public Sector Banks perform functions of technical

nature including the fulfillment of credit requirements as per government’s
economic plans and controlling the utilisation of these credits according to
planned priorities. The role of public sector banks has become increasingly
crucial over time to mobilise savings for the purpose of credit for the
agriculture, industry, trade and commerce in accordance with the plan
priorities and targets.
Hence, the environment in which banks function is important because it is
either conducive to the progress of the banks or detrimental to its
functioning. Banks have to perform their functions within the purview of
monetary and credit policies laid down

by the Reserve Bank of India. The monetary and the credit policies of RBI are
considered to be the operational constraints of the public sector Banks.
Because, these operational constraints, more or less, affect the profitability
of banks. However, for survival of the public sector banks, profitability has
been contemplated as one of the major criteria.

Banking in India

Banking in India originated in the first decade of 18th century. The first banks were The
General Bank of India, which started in 1786, and Bank of Hindustan, both of which are
now defunct. The oldest bank in existence in India is the State Bank of India, which
originated in the "The Bank of Bengal" in Calcutta in June 1806. This was one of the
three presidency banks, the other two being the Bank of Bombay and the Bank of
Madras. The presidency banks were established under charters from the British East
India Company. They merged in 1925 to form the Imperial Bank of India, which, upon
India's independence, became the State Bank of India. For many years the Presidency
banks acted as quasi-central banks, as did their successors. The Reserve Bank of India
formally took on the responsibility of regulating the Indian banking sector from 1935.
After India's independence in 1947, the Reserve Bank was nationalized and given
broader powers.

EARLY HISTORY
The first fully Indian owned bank was the Allahabad Bank, established in 1865.
However, at the end of late-18th century, there were hardly any banks in India in the
modern sense of the term. The American Civil War stopped the supply of cotton to
Lancashire from the Confederate States. Promoters opened banks banks to finance
trading in Indian cotton. With large exposure to speculative ventures, most of the banks
opened in India during that period failed. The depositors lost money and lost interest in
keeping deposits with banks. Subsequently, banking in India remained the exclusive
domain of Europeans for next several decades until the beginning of the 20th century.
Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire
d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in
1862; branches in Madras and Pondichery, then a French colony, followed. Calcutta
was the most active trading port in India
Around the turn of the 20th Century, the Indian economy was passing through a relative
period of stability. Around five decades had elapsed since the Indian Mutiny, and the
social, industrial and other infrastructure had improved. Indians had established a small
banks, most of which served particular ethnic and religious communities.
The presidency banks dominated banking in India. There were also some exchange
banks and a number of Indian joint stock banks. All these banks operated in different
segments of the economy. The exchange banks, mostly owned by Europeans,
concentrated on financing foreign trade. Indian joint stock banks were generally under
capitalized and lacked the experience and maturity to compete with the presidency and
exchange banks. This segmentation let Lord Curzon to observe, "In respect of banking
it seems we are behind the times. We are like some old fashioned sailing ship, divided
by solid wooden bulkheads into separate and cumbersome compartments."
By the 1900s, the market expanded with the establishment of banks such as Punjab
National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which
were founded under private ownership. Punjab National Bank is the first Swadeshi Bank
founded by the leaders like Lala Lajpat Rai, Sardar Dyal Singh Majithia. The Swadeshi
movement in particular inspired local businessmen and political figures to found banks
of and for the Indian community. A number of banks established then have survived to
the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda,
Canara Bank and Central Bank of India.

The partition of India in 1947 adversely impacted the economies of Punjab and West
Bengal, paralyzing banking activities for months. India's independence marked the end
of a regime of the Laissez-faire for the Indian banking. The Government of India initiated
measures to play an active role in the economic life of the nation, and the Industrial
Policy Resolution adopted by the government in 1948 envisaged a mixed economy.
This resulted into greater involvement of the state in different segments of the economy
including banking and finance. The major steps to regulate banking included:

• In 1948, the Reserve Bank of India, India's central banking authority, was
nationalized, and it became an institution owned by the Government of India.
• In 1949, the Banking Regulation Act was enacted which empowered the Reserve
Bank of India (RBI) "to regulate, control, and inspect the banks in India."
• The Banking Regulation Act also provided that no new bank or branch of an
existing bank may be opened without a license from the RBI, and no two banks
could have common directors.

However, despite these provisions, control and regulations, banks in India except the
State Bank of India, continued to be owned and operated by private persons. This
changed with the nationalisation of major banks in India on 19th July, 1969.

NATIONALISATION

By the 1960s, the Indian banking industry has become an important tool to facilitate the
development of the Indian economy. At the same time, it has emerged as a large
employer, and a debate has ensued about the possibility to nationalise the banking
industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the
GOI in the annual conference of the All India Congress Meeting in a paper entitled
"Stray thoughts on Bank Nationalisation." The paper was received with positive
enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an
ordinance and nationalised the 14 largest commercial banks with effect from the
midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described
the step as a "masterstroke of political sagacity." Within two weeks of the issue of the
ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of
Undertaking) Bill, and it received the presidential approval on 9th August, 1969.
A second dose of nationalization of 6 more commercial banks followed in 1980. The
stated reason for the nationalization was to give the government more control of credit
delivery. With the second dose of nationalization, the GOI controlled around 91% of the
banking business of India. Later on, in the year 1993, the government merged New
Bank of India with Punjab National Bank. It was the first and only merger between
nationalized banks and resulted in the reduction of the number of nationalised banks
from 20 to 19. After this, until the 1990s, the nationalised banks grew at a pace of
around 4%, closer to the average growth rate of the Indian economy.

LIBERALISATION

In the early 1990s, the then Narsimha Rao government embarked on a policy of
liberalization, licensing a small number of private banks. These came to be known as
New Generation tech-savvy banks, and included Global Trust Bank (the first of such
new generation banks to be set up), which later amalgamated with Oriental Bank of
Commerce, UTI Bank(now re-named as Axis Bank), ICICI Bank and HDFC Bank. This
move, along with the rapid growth in the economy of India, revitalized the banking
sector in India, which has seen rapid growth with strong contribution from all the three
sectors of banks, namely, government banks, private banks and foreign banks.
The next stage for the Indian banking has been setup with the proposed relaxation in
the norms for Foreign Direct Investment, where all Foreign Investors in banks may be
given voting rights which could exceed the present cap of 10%,at present it has gone up
to 49% with some restrictions.
The new policy shook the Banking sector in India completely. Bankers, till this time,
were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning.
The new wave ushered in a modern outlook and tech-savvy methods of working for
traditional banks.All this led to the retail boom in India. People not just demanded more
from their banks but also received more.

CURRENT SITUATION
Currently (2007), banking in India is generally fairly mature in terms of supply, product
range and reach-even though reach in rural India still remains a challenge for the
private sector and foreign banks. In terms of quality of assets and capital adequacy,
Indian banks are considered to have clean, strong and transparent balance sheets
relative to other banks in comparable economies in its region. The Reserve Bank of
India is an autonomous body, with minimal pressure from the government. The stated
policy of the Bank on the Indian Rupee is to manage volatility but without any fixed
exchange rate-and this has mostly been true.
With the growth in the Indian economy expected to be strong for quite some time-
especially in its services sector-the demand for banking services, especially retail
banking, mortgages and investment services are expected to be strong. One may also
expect M&As, takeovers, and asset sales.
In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake
in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor
has been allowed to hold more than 5% in a private sector bank since the RBI
announced norms in 2005 that any stake exceeding 5% in the private sector banks
would need to be vetted by them.
Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks
(that is with the Government of India holding a stake)after merger of New Bank of India
in Punjab National Bank in 1993, 29 private banks (these do not have government
stake; they may be publicly listed and traded on stock exchanges) and 31 foreign
banks. They have a combined network of over 53,000 branches and 17,000 ATMs.
According to a report by ICRA Limited, a rating agency, the public sector banks hold
over 75 percent of total assets of the banking industry, with the private and foreign
banks holding 18.2% and 6.5% respectively the trade of the British Empire, and so
became a banking center.
 SERVICES RENDERED BY BANKS

The range of service offered differs from bank to bank, depending mainly on
the size and type of banks, but the acceptance of deposits from the public and
provision of credit from the mainstay of the banking business. The services offered
by commercial banks may be classified into (i) services to depositors and borrowers
for providing credit to them, and (ii) ancillary services.

SERVICES RENDERED TO BORROWER AND DEPOSITORS

Banks open various types of deposit accounts and render the following
services to the depositors and borrowers:

1. Collection of cheques, demand drafts, bills of exchange, promissory notes,

hundis and foreign documentary and clean bills.

2. Purchase of local and foreign currency documentary/clean bills, negotiation of bills

under inland and foreign letters of credit. Advising of inland and foreign letters of
credit established by branches and correspondents.

3. Carrying out the standing instructions for the payment of insurance premium,
subscriptions, certain taxes and gift remittances.
 ANCILLARY SERVICES

1. Performance Guarantees and Financial Guarantees.

2. Safe Custody of Deeds, Securities.

3. Safe Deposit Vault.

4. Purchase and Sale of Securities.

5. Collection of Interest on Securities/Debentures and Dividend on Shares,

Collection of Pension Bills.

6. Remittance of Funds-Banks Drafts, Mail Transfers, Telegraphic Transfers

7. Executors and Trustees.

8. Personal tax Assistance, preparing Income Tax, Sales Tax, Wealth Tax
Returns.

9. Investment Facilities-Underwriting, Banker to new issues. Guidance to

investment. Stock Exchange assistance.

10. Credit Transfers.

11. Credit Cards.

12. Travellers Cheques and Gift Cheques.

INTRODUCTION OF RETAILING

Retailing consists of the sale of goods or merchandise from a fixed location, such as a
department store or kiosk, or by post, in small or individual lots for direct consumption
by the purchaser.[1] Retailing may include subordinated services, such as delivery.
Purchasers may be individuals or businesses. In commerce, a retailer buys goods or
products in large quantities from manufacturers or importers, either directly or through a
wholesaler, and then sells smaller quantities to the end-user. Retail establishments are
often called shops or stores. Retailers are at the end of the supply chain. Manufacturing
marketers see the process of retailing as a necessary part of their overall distribution
strategy.With a jump in the Indian economy from a manufacturing sector, that never
really took off, to a nascent service sector, Banking as a whole is undergoing a change.
A larger option for the consumer is getting translated into a larger demand for financial
products and customisation of services is fast becoming the norm than a competitive
advantage. With the Retail banking sector expected to grow at a rate of 30% [Chanda
Kochhar, ED, ICICI Bank] players are focussing more and more on the Retail and are
waking up to the potential of this sector of banking. At the same time, the banking sector
as a whole is seeing structural changes in regulatory frameworks and securitisation and
stringent NPA norms expected to be in place by 2004 means the faster one adapts to
these changing dynamics, the faster is one expected to gain the advantage. In this
article, we try to study the reasons behind the euphemism regarding the Retail-focus of
the Indian banks and try to assess how much of it is worth the attention that it is
attracting.
Potential for Retail in India
The Indian players are bullish on the Retail business and this is not totally unfounded.
There are two main reasons behind this. Firstly, it is now undeniable that the face of the
Indian consumer is changing. This is reflected in a change in the urban household
income pattern. The direct fallout of such a change will be the consumption patterns and
hence the banking habits of Indians, which will now be skewed towards Retail products.
At the same time, India compares pretty poorly with the other economies of the world
that are now becoming comparable in terms of spending patterns with the opening up of
our economy. For instance, while the total outstanding Retail loans in Taiwan is around
41% of GDP, the figure in India stands at less than 5%. The comparison with the West
is even more staggering. Another comparison that is natural when comparing Retail
sectors is the use of credit cards. Here also, the potential lies in the fact that of all the
consumer expenditure in India in 2001, less than 1% was through plastic, the
corresponding US figure standing at 18%.

HISTORY OF BANK OF INDIA

Bank of India was founded on 7th September, 1906 by a group of eminent

businessmen from Mumbai. The bank was under private ownership and control till
July 1969 when it was nationalized along with 13 other banks.

Beginning with one office in Mumbai, with a paid-up capital of rs.50 lakh and
50 employees, the bank has made a rapid growth over the years and blossomed into
a mighty institution with a strong national presence and sizable international
operations. In business volume, the bank occupies a premier position among the
nationalized banks.

The bank has 2884 branches in India

Spread over all states/ union territories
including 155 specialized branches. These branches are controlled through 48
zonal offices. There are 27 branches/ offices (including three representative
offices) abroad.
The bank came out with its maiden public issue in 1997 and follow on qualified
institutions placement in February 2008. . Total number of shareholders as on
30/06/2008 is 2, 29,000.

While firmly adhering to a policy of prudence and caution, the bank has been in
the forefront of introducing various innovative services and systems. Business
has been conducted with the successful blend of traditional values and ethics
and the most modern infrastructure. The bank has been the first among the
nationalized banks to establish a fully computerized branch and atm facility at
the mahalaxmi branch at Mumbai way back in 1989. The bank is also a founder
member of swift in India. It pioneered the
Introduction of the health code
system in 1982, for evaluating/ rating its credit portfolio.

The bank's association with the capital market goes back to 1921 when it
entered into an agreement with the Bombay stock exchange (BSE) to manage the BSE
clearing house. It is an association that has blossomed into a joint venture
with BSE, called the BOI shareholding ltd. to extend depository services to the
stock broking community. Bank of India was the first Indian bank to open a
branch outside the country, at London, in 1946, and also the first to open a
branch in Europe, Paris in 1974. The bank has sizable presence abroad, with a
network of 27 branches (including three representative offices) at key banking
and financial centres viz. London, newyork, Paris, Tokyo, hong-kong and Singapore.
The international business accounts for around 20.10% of bank's total
business

.
 BANK OF INDIA’S MISSION & VISION

MISSION

"To Provide Superior, Proactive Banking Services To Niche Markets

Globally, While Providing Cost-Effective, Responsive Services To Others In Our
Role As A Development Bank, And In So Doing, Meet The Requirements Of Our
Stakeholders".

VISION
"To Become The Bank Of Choice For Corporate, Medium Businesses And
Up Market Retail Customers And To Provide Cost Effective Developmental Banking
For Small Business, Mass Market And Rural Markets"
 RETAIL BANKING

Retail banking refers to banking in which banks undergo transactions directly

With consumers, rather than corporations or other banks. Services offered
Include: savings and checking accounts, mortgages, personal loans, debit cards,
Credit cards, and so forth.
Retail banking is a banking service that is geared primarily toward individual consumers.
Retail banking is usually made available by commercial banks, as well as smaller
community banks. Unlike wholesale banking, retail banking focuses strictly on
consumer markets. Retail banking entities provide a wide range of personal banking
services, including offering savings and checking accounts, bill paying services, as well
as debit and credit cards. Through retail banking, consumers may also obtain
mortgages and personal loans. Although retail banking is, for the most part, mass-
market driven, many retail banking products may also extend to small and medium
sized businesses. Today much of retail banking is streamlined electronically via
Automated Teller Machines (ATMs), or through virtual retail banking known as online
banking.

RETAIL PRODUCTS OF BANK OF INDIA

SAVINGS BANK A/C

Name of Scheme =Savings Bank A/c

Scheme available at br. =all branches

Eligibility = an Individual - Single Accounts,Two or

more individuals in Joint Accounts ,
Illiterate Persons Blind persons,Minors,
Associations, Clubs, Societies, etc.
Trusts, Institutions/Agencies
specifically permitted by the RBI

• Initial Deposits =Rs.500/- for Cheque book operated and

Rs.100/- for non cheque book a/cs,
For Pensioners Rs.100/- and Rs.10/-
• Interest Rate =3.5% p.a applied twice in a year in Feb and August
• Charges of non-maintaining
minimum balance =Rs.20/- per month for not maintaining min Balance
• Incentives =1) FOR CHEQUE OPERATED ACCOUNTS 50 CHEQUE LEAVES
P.A, FREE

2) No Ledger folio/ Transaction charges

3) FreeGLOBAL DEBIT CUM ATM Card

4) Free Internet Banking facility

5) FREE FUND TRANSFER THROUGH INTEFRNET BANKING

6) Unlimited Internet & ATM transactions

7)Free access to BOI ATMs under Cash Tree

 8)FREE SMS AND TELEBANKING,

9)Personalised cheque book on

request.at select centres

10)Free utility bills payment facility

through e-pay

11)Free NEFT/RTGS through internet

Banking upto Rs5 lac

12)AT CBS branches max.

cash withdrawal transaction:50000/-,
upto 25000/- per day free. Beyond Rs.25000/- charges - Rs.2/- per thousand
and cash deposits. Rs.1/- per thousand for tr. Of funds from CBS to CBS
• Product available specially
to BOI customers =Life Insurance Cover upto Rs,1 lac and
accidental Ins cover upto
Rs.1 lac to all SB account holders at
concessional rate of premium
from ICICI pru life Ins Co ltd
• Product available specially
to BOI customers =BOI-National Swasthya Bima Yojana
floter mediclaim policy and domestic
travel Ins policy of NICL available
at concessional rate of premium
• Product available specially
to BOI customers =Domestic Travel Insurance
Cover at concessional rate of Rs.63/- p.a.
available to BOI customers
BASIC SAVINGS A/C

FEATURES:

1. Adult Individuals can open account.

2. Firms / Joint accounts not eligible

3. Simplified Know Your customer norms to be complied

4. Minimum balance Rs. 50/= in rural and semi-urban branches ; Rs. 100/= in Urban
& Metro branches.

5. Free Debit Cum ATM card issued at all CBS branches.

6. Withdrawals through ATMs & branch withdrawals - max 2 per month.

7. No third party withdrawals

8. Nomination compulsory.

9. Interest @ 3.50 % p.a. on balances -Min interest earning to be Rs. 5/- half yearly.

10. Collection of cheques upto Rs. 5000/=into the account.

11. Free quarterly statement of account at Urban and Metro branches. Pass books
at Rural & semi-urban branches.

12.No penalty for not maintaining Min balance.

13. No charges for closure of account.(ATM Debit card to be surrendered at Urban &
Metro centres)

14. Account can be converted into normal SB account by maintaining required

minimum balance.

15. Branch Managers are delegated to issue one cheque book free to literate
account holders.

SAVINGS PLUS SCHEME

SALIENT FEATURES
(Effective from 1-2-2007)

BOI Savings Plus is a mix of Savings Bank Account and Term Deposit Account.
It aims at maximizing the earnings for the customer, without jeopardizing liquidity.

Minimum balance in SB portion is Rs.25,000/- and minimum balance in Term

Deposit Portion is Rs.5,000/-.

Any amount in excess of Rs.25,000/- in the SB portion will be auto swept out into the
SDR or DBD portion in multiples of Rs.5,000/- on daily basis.

In the SDR portion, monies can be invested for any period from 15 days to 179 days,
as per the customer's choice. In the DBD portion, monies can be invested from 6
months upto and including 10 years, as per the customer's choice.

Upon maturity, the principal in the SDR/DBD portion would be auto-renewed for an
equal period, while the interest would be credited to the SB portion on the concerned
due date. The same, if not withdrawn can be swept back again into SDR/DBD for a
period of the customer's choice.

In case the balance in the SB portion is short of the required level to meet cheques
presented in the A/c., funds from SB Plus portion will be auto swept in, into the SB
portion, in multiples of Rs.1,000/- on daily basis. Although this would amount to
Payment before Maturity, no penalty would be charged. The latest SDR/DBD deposit
would be closed before maturity (in multiples of Rs.1,000/-) to ensure that the
customer does not have to bear higher loss (i.e. LIFO principle to apply).

Non-maintenance of minimum balance prescribed in the SB portion, will attract a

penalty of Rs.200/- per quarter.

Rate of Interest on the SB portion would be 3.5% p.a., while the Rate of Interest on
the SDR/DBD portion will depend on the tenure for which each deposit is placed,
and at the ruling Interest Rate as on the date the deposit is placed or renewed.

TDS norms would apply as per extant rules

BOI SUPER SAVING PLUS

Name of Scheme=Super Saving Plus

Scheme available at br.=all CBS branches
Eligible=All those who can open SB A/c can open this a/cs
Initial Deposits=20 lacs
Minmum balance or Qr.Avg. balance=5 lacs qr. Avg.
Sweep in (Transfer Back to SB/CD A/c from TDR)) =Daily
Sweep out(Transfer from SB/CD to TDR)=15 days
Multiple Amount sweep out=15 lacs
Period of Deposit=Less than 6 months
Interest Rate=As applicable to deposit of Rs,15.00 lacs & above
Charges of non-maintaining min.
qr. Avg. balance=500/- per quarter
Premature withdrawal=Sweep in allowed daily
Advance available=No advance available
Incentives

=Free Int.Debit-cum_ATM card

= Free Internet Banking facility
=Free remittane upto 25000/--MBB
=Personalised cheque book on request.
=ROI applicable to less than 15 lac
=Free NEFT/RTGS through internet Banking upto Rs5 lac
=AT CBS branches max. cash withdrawal transaction:50000/-, upto 25000/- per day
free. Beyond Rs.25000/- charges - Rs.2/- per thousand and cash deposits. Rs.1/- per
thousand for tr. Of funds from CBS to CBS
Product available specially to BOI customers=Life Insurance Cover upto Rs,1 lac
and accidental Ins cover upto Rs.1 lac to all SB account holders at concessional rate of
premium from ICICI pru life Ins Co ltd
Product available specially to BOI customers=BOI-National Swasthya Bima Yojana
floter mediclaim policy and domestic travel Ins policy of NICL available at concessional
rate of premium
Product available specially to BOI customers=Domestic Travel Insurance Cover at
concessional rate of Rs.63/- p.a. available to BOI customers
STAR DIAMOND SAVINGS ACCOUNT.

Bank of India offers you 'Star Diamond Banking'. An experience that opens the doors to
a whole new world of privileged banking. One that's filled with unparalleled advantages.
The Star Diamond Banking status could be the ace up your sleeve, making transactions
hassle-free and banking that much simpler. So be a part of a new era in banking, one in
which we can share an exclusive and cherished relationship.
Presently available in all CBS branches

THE BENEFITS*
FEATURES=STAR DIAMOND SAVINGS ACCOUNT

Average Quarterly Balance in Savings A/c =1 lac and above

Branch debit transactions per month=FREE

SMS/Phone/ATM and Internet Banking=FREE

Personalised cheque book=Yes

Multi-city cheque book facility=Yes

Home delivery of Demand Drafts (couriered)=FREE

Statement of Account, on demand=FREE

International Gold Credit Card=FREE

International Debit Card=FREE

Relationship Manager=Yes

Processing charges on Personal/Retail Loans=Waived

Demat Account Annual Maintenance charge=Waived

Inward Cheque Return charges - local=Waived

Air Accident Travel Insurance =Upto Rs.5.00 lacs free

STAR POWER SALARY ACCOUNT

SALIENT FEATURES:

1. No minimum balance requirements.

2. No Ledger Folio/ Transactions charges.
3. Free ATM International Debit Card.
4. Free India Card (Charge Card)
5. Free Internet Banking Facility.
6. Unlimited ATM and Internet Transactions.
7. Free Access to non-BOI ATMs under Cash Tree.
8. Free Statement of Account - Quarterly - from the Branch
(No Pass Books to be delivered) Monthly - through e-mail.
9. Free Tele banking/ SMS Banking *
10. Free Personalised Cheque Books (50 leaves in a year)*
11. Free Demat Account (for the first year)*
12. Facility for Online Trading of Shares*
13. Free cheque pickups/deliveries - once a day (cheque drop boxes to be installed in
the Office)
14. TOD Facility - equal to previous month's net salary @ Personal Loan Rate.#
15. Free Multicity Cheques *
16. Free Personal Accident Insurance Cover (as per Debit Card & India Card privileges)

17. Free Utility Bills Payment through e-Pay Facility.

18. Waiver of processing charges and/or concession in R/Interest upto 25 basis points
for group processing of Retail Loans of the employees. - ZMs to use their discretion.

# Conditions apply.- For TOD Facility, the employee's total deductions should not be
more than 65% of his total salary. Branch Managers to use their discretion based on the
conduct of the Salary A/c.
* At select centers only. Free Multi city Cheque would be available to those employees
whose Average Quarterly Balance is Rs.50,000/- or more }

Free fund transfer ( NEFT/RTGS) facility through Internet Banking Upto Rs.5lac

TERMS & CONDITIONS :

1. Salary Accounts may be opened for Firms/ Corporates/ Govt./ Semi-Govt.

undertakings having minimum 25 employees.
2. The Institution should open its C/D A/c. with us, wherever possible.
3. Minimum net salary of any employee not to be less than Rs.10,000/- p.m.
4. Salary Accounts may be opened only in CBS Branches, so that
a. centralized salary database is created and provided to the Salary paying Company/
Govt. Deptt., whenever required (at a cost).
b. Simultaneous credit of salary for all the employees in various branches of the
Company is possible through centralized salary payment scheme in the case of
companies having branches in more than one city.
c. Salary paying Company provides salary particulars in a floppy or soft copy, so that
credit can be given to the individual accounts with least work pressure.

CURRENT DEPOSITS

NORMAL CURRENT DEPOSIT SCHEME

Name of Scheme=Current Account (normal)

Scheme available at br.=In all Branches
Eligible=Individual - Single Accounts
(ii)Two or more individuals - Joint Accounts
(iii)Sole Proprietory Concerns
(iv)Partnership Firms
(v)Illiterate Persons
(vi)Blind Persons
(vii)Minors
(viii)Limited Companies
(ix)Associations, Clubs, Societies, etc.
(x)Trusts
(xi)Joint Hindu families (accounts of non-trading nature only)
(xii)Municipalities
(xiii)Government and Quasi-Government Bodies
(xiv)Panchayats
(xv)Religious Institutions
(xvi)Educational Institutions (including Universities)
(xvii)Charitable Institutions
Initial Deposits=Rs.5000/- for a/cs pf individuals & Rs.10,000/- for others
Minmum balance =Same as above
Cheque return Charges=Cheque returned unpaidLocal chequesRs.80/- per instrument
[due to insufficient funds]Rs.60/- per instrument [for technical reason]Outstation
cheques :50% of prescribed collection charges subject to min. Rs.80/-
LF.Charges=Rs.60/-per L.F. Free LFs for maintaining higher average Quarterly balance
also being allowed
Incentives=Free Global Debit cum ATM card to Individuals and Prop
=SMS/phone/Internet banking free
=Free NEFT/RTGS through internet Banking upto Rs 25lac for corporate users and
uptoRs5lac for retail users
=AT CBS branches max. cash withdrawal transaction:50000/-, upto 25000/- per day
free. Beyond Rs.25000/- charges - Rs.2/- per thousand and cash deposits. Rs.1/- per
thousand for tr. Of funds from CBS to CBS
=BOI-National Swasthya Bima Yojana floter mediclaim policy and domestic travel Ins
policy of NICL available at concessional rate of premium to individuals

CURRENT DEPOSITS PLUS SCHEME *

A deposit product combining Current & Fixed deposit account with ‘ sweep-in’ and
‘sweep-out’ facility to take care of withdrawals, if any.
Available at all Fully Computerised branches.

Facility available to Current Deposit Account of Corporates, Proprietorship,

Partnership, Individuals, Schools, Colleges and other institutions (other than Banks).

Minimum balance of Rs.2,00,000/- in Current Deposit Account and Rs.30,000/- in

Fixed Deposit Account to be maintained initially.

Amount in excess of Rs.2,00,000/- will be transferred to the Fixed Deposit portion in

multiples of Rs.30,000/- for a maximum period of 91 days or as specified by the
customer (minimum period 15 days, maximum period one year).

To meet urgent requirement of funds in the Current Deposit Account portion, funds in
multiples of Rs.30,000/- will be swept-in from Fixed Deposit portion on last-in first-out
(LIFO) basis subject to availability of funds

Automatic renewal facility for original tenure of deposit.

Interest will be payable on Fixed Deposit portion only as per maturity period.

Payment before maturity will be allowed without penalty , to meet shortfall if any, subject
to availability of fund.

Penalty charges of Rs.500/- per quarter will be levied where the average quarterly
balance in Current deposit account falls below the minimum stipulated amount.

TDS as applicable.

Sweep out from current to fixed deposits will only be an 1st & 16th of every month

Other Incentives
nstant transfer of funds between Multi Branch Banking MBB/CBS branches of the Bank.

No charges for remittances through MBB upto Rs.25000/-.

Facility for Multi-City cheques payable at par at all our MBB/CBS centres.

Free pre-printed personalised cheque books.

Multi-City cheque charges at Rs.3/- per cheque leaf will be levied.

Identified eligible customers using continuous stationery cheques will continue to use
the same with suitable modification.

6 free remittance - DD / payorder - per quarter up to Rs.50,000/- per transaction.

Collection of crossed cheques from the door-steps of the customers maintaining an

average monthly balance of Rs.5 lakh i.e. (balance in Current + Fixed Deposit
Account).A monthly charge of Rs.250/- or the actual charges, whichever is higher will be
levied.

Commission on upcountry cheques at locations where we have branches upto a total

value of Rs.25000/- per month will be waived. However, out of pocket expenses will be
charged.

Waiver of folio charges.

Free ATM cards as applicable. Free tele-banking facility wherever available.

Fortnightly statement of accounts will be sent through e-mail to the customers.

Waiver of stop payment charges.

Relationship Manager.

BOI SUPER CURRENT PLUS ACCOUNT

Name of Scheme=Super Current Plus

Scheme available at br.=all CBS branches
Eligible=Individual, Corporates, Prop. And partnerships (other than Banks)
Initial Deposits=50 lacs
Minmum balance or
Qr.Avg. balance=35 lacs Quar. Avg. + 15 lacs TDR for 1 year
Sweep in
(Transfer Back to
SB/CD A/c from TDR)) =Daily
Sweep out
(Transfer from SB/CD
to TDR)=Daily
Multiple Amount sweep out=15 lacs
Period of Deposit=1 year
Interest Rate=As applicable to deposit of Rs,15.00 lacs & above
Charges of non-maintaining
mimum qr. Avg. balance=1000/- per quarter
Premature withdrawal=Sweep in allowed daily
Advance available=No advance available
Incentives =Free Int.Gold Credit Card/Int.Debit-cum-ATM Card/India card
=Multicity cheque book
=Free remittane upto 25000/--MBB, Beyond 25000/--50% of applicable charges
=Multi city Personalised cheque book on request- charges @3/- per leaf. No levy of
transaction costs..
=Relationship Manager will attend
=SMS/phone/Internet banking free
=25% concession on cheque book charges
=15 DD/PS free per quarter
=No charges for stop payment
=No charges for standing instructions
=For no dues/bal. conf/ cert of maintenance of a/c- no charges
=AT CBS branches max. cash witdrawalRs:50000/-, upto 25000/- per day free. Beyond
Rs.25000/- charges - Rs.2/- per thousand and cash deposits. Rs.1/- per thousand for tr.
Of funds from CBS to CBS
=Free NEFT/RTGS through internet Banking upto Rs 25lac for corporate users and
uptoRs5lac for retail users
=BOI-National Swasthya Bima Yojana floter mediclaim policy and domestic travel Ins
policy of NICL available at concessional rate of premium

Bank of India's

Bank of India's Star Diamond &Star Gold Current Accounts.

Bank of India offers you 'Star Diamond Plus Banking', 'Star Diamond Banking' & 'Star
Gold Banking'. An experience that opens the doors to a whole new world of privileged
banking. One that's filled with unparalleled advantages. The Star Diamond Plus, Star
Diamond & Star Gold Banking status could be the ace up your sleeve that's particularly
beneficial in the high-powered business world, making your transactions hassle-free
and trade that much simpler. So be a part of a new era in banking, one in which we can
share an exclusive and cherished relationship.
Presently available in select city branches only.

The Benefits*

Tier Gold Diamond Diamond Plus

Average quarterly balance (Rs) 50,000 200,000 5,00,000

Free folios (p.a.) 8 Unlimited Unlimited

Multi-branch banking Free Free Unlimited

Multi-city cheque Book Charges Personalised , Cheque Book Charges ----- ----
25% concession

Free Remittances - 6/qtr 15/qtr

Cheque bounce protection (Rs) - 50,000 2,50,000

Relationship Manager - Br. officer Br. Mgr.

Door-step banking - Yes, at a charge Free

Phone/SMS / Internet banking Free Free Free

ATM-cum-debit card Yes Yes Yes

•Renewal charge Free Free Free

International Gold Credit card and accident insurance - 1 card free 1+1
card free

Statements Monthly Unlimited Unlimited

Instant credit of outstation cheques 25,000 1,00,000 1,00,000

Waiver on stop payment charges - Yes Yes

Free standing instruction - Yes Yes

Free balance certificate Yes Yes Yes

Incidental Benefits available

EFT/ECS/RTGS ( only RBI Charges) No No Free

Inward / Outward Doc Bills for Collection ( out of pocket Expenses Charge) No
No 25% concession

Solvency Certificate - - 25% concession

Free NEFT/RTGS through Internet Banking upto Rs 5 lac to Individials and Rs.25 lac
to Corp Orate users Same Same
 Bank of India's Star Diamond &Star Gold Current Accounts.

Bank of India offers you 'Star Diamond Plus Banking', 'Star Diamond Banking' & 'Star
Gold Banking'. An experience that opens the doors to a whole new world of privileged
banking. One that's filled with unparalleled advantages. The Star Diamond Plus, Star
Diamond & Star Gold Banking status could be the ace up your sleeve that's particularly
beneficial in the high-powered business world, making your transactions hassle-free
and trade that much simpler. So be a part of a new era in banking, one in which we can
share an exclusive and cherished relationship.
Presently available in select city branches only.

The Benefits*

Tier Gold Diamond Diamond Plus

Average quarterly balance (Rs) 50,000 200,000 5,00,000

Free folios (p.a.) 8 Unlimited Unlimited

Multi-branch banking Free Free Unlimited

Multi-city cheque Book Charges Personalised , Cheque Book Charges ----- ----
25% concession

Free Remittances - 6/qtr 15/qtr

Cheque bounce protection (Rs) - 50,000 2,50,000

Relationship Manager - Br. officer Br. Mgr.

Door-step banking - Yes, at a charge Free

Phone/SMS / Internet banking Free Free Free

ATM-cum-debit card Yes Yes Yes

•Renewal charge Free Free Free

International Gold Credit card and accident insurance - 1 card free 1+1
card free
Statements Monthly Unlimited Unlimited

Instant credit of outstation cheques 25,000 1,00,000 1,00,000

Waiver on stop payment charges - Yes Yes

Free standing instruction - Yes Yes

Free balance certificate Yes Yes Yes

Incidental Benefits available

EFT/ECS/RTGS ( only RBI Charges) No No Free

Inward / Outward Doc Bills for Collection ( out of pocket Expenses Charge) No
No 25% concession

Solvency Certificate - - 25% concession

Free NEFT/RTGS through Internet Banking upto Rs 5 lac to Individials and Rs.25 lac
to Corp Orate users Same Same

TERM DEPOSIT

DOUBLE BENEFIT TERM DEPOSIT

Double Benefit Deposits provide a higher yield on the principal at the

end of the stipulated period as the interest is compounded on
quarterly basis; but, the principal and the accrued interest is paid only
at the end of the period for which the deposit is placed with the Bank
and not monthly or half-yearly as in the case of other types of
deposits. This scheme is useful for short term and medium term
investment ordinarily ranging from 12 months to 120 months.

KYC ( Know Your Customer) Norms for opening account are

applicable for these accounts also hence proof of residence and
proof of identification will be required along with recent
photograph of the depositor/s
Types of Accounts
The accounts may be opened in the names of:
(i) Individual — Single Accounts
(ii) Two or more individuals — Joint Accounts
(iii) Sole Proprietory Concerns
(iv) Partnership Firms
(v) Illiterate Persons
(vi) Blind Persons
(vii) Minors
(viii) Limited Companies
(ix) Associations, Clubs, Societies, etc.,
(x) Trusts
(xi) Joint Hindu Families (accounts of non-trading nature only)
(xii) Municipalities
(xiii) Government and Quasi-Government Bodies
(xiv) Panchayats
(xv) Religious Institutions
(xvi) Educational Institutions (including Universities)
(xvii) Charitable Institutions

Period and Amount of Deposit

Deposits under Double Benefit Deposit Scheme are accepted for a

fixed period from six months upto a maximum period of 120 months.
These deposits, on maturity are repayable with interest compounded
on quarterly basis. These deposits may be accepted even for periods
where the terminal quarter/half year is incomplete.

Minimum amount of Deposit :

Minimum amount that may be accepted for the scheme shall be

Rs.10,000/-in Metro and Urban Branches and Rs.5000/- at Rural and
Semi urban Branches

Minimum Amount criteria will not be applicable to Subsidy kept

under GOVT Sponsored Schemes, Margin Money, earnest money
and court attached/ordered deposits

Payment of Interest:
Interest will be paid at the time of maturity along with principal
with quarterly compounding.(The payment/credit of interest in
the account will be subject to TDS as applicable)PAN number is
essential for those accounts where TDS is deducted.

Payment and Renewal of Deposits Before Maturity

Depositors may request repayment of their deposits before maturity.

Repayment of term deposits before maturity is permissible in terms of
the directives of the Reserve Bank of India issued from time to time. In
terms of the directives, the provision regarding premature withdrawal
of deposits is as follows:

Request for premature

Penal Interest of deposit
withdrawal
a) below 7 days of date of
No interest to be paid
issue/renewal
1% less than the rate of interest
applicable to the period for which
b) after 7 days of date of
the deposit has remained with the
issue/renewal
Bank or at the contracted rate
whichever is lower
 ( No penal interest for Deposit
Receipt of Rs.25 lac and above)

Fixed/Short Term Deposit

Deposits which are repayable after less than 6 months are called Short Deposits;
interest thereon is calculated on the basis of 365 days in a year for the actual number of
days the Short Deposit remains with the Bank. Deposits which are repayable after six
months or more are called Fixed Deposits; interest thereon is calculated on the basis of
365 days in a year or actual months

KYC ( Know Your Customer) for opening account is applicable for these accounts
hence proof of residence and proof of identification will be required alongwith
recent photograph of the depositor/s

Need to open Savings Bank Accounts

It is desirable that the Term Deposit account holders also maintain Savings Bank
accounts with the Bank so as to avoid delay in disbursement of interest on term
deposits or inconvenience to the depositor to call on the Branch to collect interest.
``For the benefit and convenience, may we suggest that you open a Savings Bank
Account with us and give us instructions to credit thereto, half yearly interest on this
Term Deposit Receipt. Your interest will earn interest.''

Types of Accounts
Term Deposit accounts may be opened in the names of :
(i) Individual - Single Accounts
(ii) Two or more individuals - Joint Accounts
(iii) Sole Proprietory Concerns
(iv) Partnership Firms
(v) Illiterate Persons
(vi) Blind Persons
(vii) Minors
(viii) Limited Companies
(ix) Associations, Clubs, Societies, etc.
(x) Trusts
(xi) Joint Hindu families (accounts of non-trading nature only)
(xii) Municipalities
(xiii) Government and Quasi-Government Bodies
(xiv) Panchayats
(xv) Religious Institutions
(xvi) Educational Institutions (including Universities)
(xvii) Charitable Institutions

Minimum amount Rs.1 lac for SDR and Rs.10,000/- for FDR in Metro and Urban
Branches and Rs.5000/- in Rural and Semi urban branches in FDR/SDR .Minimum
amount per single deposit for period of 7days to 14 days will be Rs.1lac.

Minimum Amount criteria will not be applicable to Subsidy kept under GOVT
Sponsored Schemes, Margin Money, earnest money and court attached/ordered
deposits

Payment of Interest: (Subject to applicable TDS)

Interest will be paid half yearly on 1st October and on 1st April and in case these dates
falls on holidays then on the next working day

Payment and Renewal of Deposits Before Maturity

Depositors may request repayment of their deposits before maturity. Repayment of term
deposits before maturity is permissible in terms of the directives of the Reserve Bank of
India issued from time to time. In terms of the directives, the provision regarding
premature withdrawal of deposits is as follows:

Request for premature

Penal Interest of deposit
withdrawal
a) below 7 days of date of
No interest to be paid
issue/renewal
1% less than the rate of interest applicable
to theperiod for which the
deposit has remained with the Bank or at
b) after 7 days of date of
the contracted rate whichever is lower
issue/renewal

(No penal interest for Deposit Receipt of

Rs.25 lac and above
QUARTERLY/ MONTHLY TERM DEPOSIT

Moneys invested in this type of deposit (Quarterly/Monthly Income Certificate) provide

fixed monthly income by way of interest to the depositor for a specified period leaving
the deposit amount intact. The Quarterly/ monthly interest will be credited to the savings
or current account and monthly interest may be credited in recurring deposit account of
the depositor according to the instructions.

KYC ( Know Your Customer) for opening account is applicable for these accounts
also hence proof of residence and proof of identification will be required along
with recent photograph of the depositor/s

Types of Accounts

The accounts may be opened in the names of:

(i) Individual — Single Accounts

(ii) Two or more individuals — Joint Accounts

(iii) Sole Proprietory Concerns

(iv) Partnership Firms

(v) Illiterate Persons

(vi) Blind Persons

(vii) Minors

(viii) Limited Companies

(ix) Associations, Clubs, Societies, etc.

(x) Trusts

(xi) Joint Hindu Families (accounts of non-trading nature only)

(xii) Municipalities

(xiii) Government and Quasi-Government Bodies

(xiv) Panchayats

(xv) Religious Institutions

(xvi) Educational Institutions (including Universities)

(xvii) Charitable Institutions

Amount to be Invested

Minimum amount that may be accepted for the scheme shall be Rs.10,000/-in Metro
and Urban Branches and Rs.5000/- at Rural and Semi urban Branches

Minimum Amount criteria will not be applicable to

Subsidy kept under GOVT Sponsored Schemes, Margin Money, earnest money
and court attached/ordered deposits

Payment of Interest ( Monthly/Quaterly ) Subject to applicable TDS

Depositor may receive interest every month at monthly discounted value.

A depositor may receive interest every quarter at actuals in which case the deposits
will, for all practical purposes, be treated as deposits under the Bank's Fixed Deposit
Scheme with an endorsement to the effect that the interest will be paid every quarter.

Maximum period for acceptance of deposit would be ten years.

Recurring Term Deposit

Recurring Deposit is a special type of deposit account which enables a depositor

particularly in fixed income group to save by paying into the account an agreed fixed
sum of money monthly over a stipulated period. The deposits in this type of account
earn compound interest on quarterly basis. Longer the period for which monthly
deposits are agreed to be made higher is the rate of interest subject to rules.

KYC ( Know Your Customer) Norms for opening account are applicable for these
accounts also hence proof of residence and proof of identification will be
required along with recent photograph of the depositor/s

Types of Accounts
only individuals are eligible to open accounts under the scheme.
Thus, the Recurring Deposit Accounts can be opened in the names of:
(i) Individual — Single Accounts
(ii) Two or more individuals — Joint Accounts
(iii) Illiterate Persons
(iv) Blind Persons
(v)Minors

Opening of Accounts
A Recurring Deposit account where the compounding of interest is to be done on
quarterly basis shall be accepted for periods in multiples of three months only upto the
maximum period of ten years..
Minimum Amount of monthly installment

Recurring Deposits will be in equal monthly instalments. The core monthly instalment
should be minimum Rs. 500/ in Metro and urban Branches and Rs.100/- or above in
Semi urban/Rural Branches and in its multiples. There is no maximum limit.

Installments of any calendar month should be paid on or before last working day of that
calendar month and if it is not so paid

penalty will be charged on the installments in arrears at the following rates:

Rs.1.50 for every Rs.100/- p.m. for deposits of 5 years and less

Rs.2.00 for every Rs.100/- p.m. for deposits of over 5 years. Where installments in the
account are deposited in advance, penalty payable in respect of delayed installments
may be waived by the Bank if the equal number of advance installments are deposited.

NO TDS is applicable in these accounts

Rate of Interest : As applicable for Term Deposits depending upon the

period/maturity.
TAX SAVING DEPOSITS

STAR SUNIDHI TAX-SAVING DEPOSIT SCHEME

A Scheme for long term savings investments, with Income Tax Benefits..

Eligible=Individuals & HUFs having PAN Numbers

Minimum Deposit=Rs.10,000/-
Maximum Deposit=Rs.1,00,000/- p.a.
Type of Deposit=FDR/MIC/QIC/DBD
Tenure=Minimum-5years
Maximum-Upto & including 10 years
Rate of interest =As applicable to our normal domestic term deposits
Premature withdrawal=Not Permitted upto 5 years.
Applicability=All branches in India
Nomination Facility=Available
Advance Facility=Not available for a period of 5 years from The Date of Deposit

Other Benefits=Tax Exemption u/s 80c of the Income Tax Act

Other Terms and Conditions=i) In the case of Joint Accounts,only the first named
Depositor will be eligible for deduction under Section 80c of the Income Tax Act.

ii) No nomination shall be made in respect of aTerm Deposit applied for and held by or
onbehalf of a Minor.iii) The Term Deposit shall not be pledged to

secure a loan or as security to any other advance.

v) Other terms and conditions as applicable to normal Term Deposits.

CAPITAL GAIN ACCOUNTS SCHEME 1988

Capital Gain Accounts Scheme 1988 is applicable to eligible taxpayers who wish to
claim exemption u/s 54 for capital gain .

1=Branches Authorized=Non Rural Branches (i.e. All Semi Urban/Urban/Metro

Branches
2=Types of Accounts=Account ‘A’ (Savings Bank)
Account ‘B’ (Term Deposit cumulative/ non-cumulative)
(Savings Plus Scheme not permitted)
3=Account Opening Form=Form – A (in duplicate) + Proof of Address + Copy of PAN
Card + Photograph + unstamped HUF Letter in case of account is for HUF (non-trading)
4=Rate of Interest=Account ‘A’ – Applicable to SB Accounts
Account ‘B’ – As per Bank’s TDR Rates.
5=Withdrawal##=Amount can be withdrawn from deposit “A” (Savings Bank Account) by
furnishing an application in form ‘C’ alongwith Pass Book.
=## Premature withdrawal from Deposit ‘B’ (TDR) is permitted by converting account
from ‘B’ to ‘A’ and by levying 1% penal interest for premature payment as in case of
TDRs.
Form B will be used for conversion of Account ‘B’ to ‘A’.
6=Further withdrawal =For subsequent withdrawal form ‘D’ (in duplicate) by giving the
details showing the manner/ purpose for which the previous withdrawal has been
utilized Banks are not obliged to allow further withdrawal if above referred particulars
are not furnished. =
7=Mode of payment=Any withdrawal over Rs.25,000/- should be affected by Bank, only
by crossed DD. =
8=Utilization of Amount withdrawn =Amount drawn from Account ‘A’ has to be utilized
within 60 days from the date of such withdrawal for the purpose mentioned in the
relevant sections. Unutilized amount should be re-deposited in Account ‘A’ immediately.
Non-compliance of this rule will render the depositor to lose exemptions under relevant
section.=
9=No Lien=Amount cannot be placed or offered as Security for any loan or guarantee
and cannot be charged or alienated. =
10=Transfer of Account=Account can be transferred to another Branch of the same
Bank.=
11=Interest Exception under I. T. Act 1961=Interest is exempted under Section 80 L of
the Income Tax Act, 1961 under prescribed limits. =
12=Transfer from Account ‘B’ to ‘A’ or ‘A’ to ‘B’=This is permitted – Depositor will apply
for this transfer in form ‘B’. If account ‘A’ is not opened a new ‘A’ will be opened on
obtention of form ‘A’.=
13=Nomination by a Individual=Form ‘E’ (Max. 3 Nominees)
1st nominee shall alone have the right to recover the amount, after death of 1st nominee,
2nd has the right and after death of 1st & 2nd, the 3rd will get right.=
14=Variation/ Cancellation of Nomination by Individual=Form ‘F’ for variation/
cancellation.
No nomination will be made for other type of accounts even for minors. Nomination
should be entered in Pass-Book/ Deposit Receipt. =
15=Issue of Duplicate Pass Book or Receipt=In the event of loss or destruction of pass
book or receipt, the branch may issue, on application made to it, a duplicate thereof
(Adopt procedure applicable to normal account) =
16=Closure of Account=1. Application in Form ‘G’ with the approval of Assessing Officer
who has jurisdiction to the depositor.
2. If depositor dies, the nominee will make application in Form ‘H’ with the approval of
Assessing Officer (having jurisdiction over deceased depositor)
3. If there is no nomination then legal heirs will apply in form ‘H’ with the approval of
Assessing Officer (having jurisdiction over deceased depositor).=
17=Overdue Deposit=Bank may renew an overdue Term Deposit under Capital Gains
Account Scheme and allow interest on such renewed TDR or a portion thereof from the
date of maturity of deposit. =

NRI DEPOSIT SCHEME

Non Resident Indians (NRIs) have a choice of two schemes for depositing their savings
with Bank of India.

These are: -

• Foreign Currency Non Resident (FCNR) accounts

• Non-Resident External (NRE) accounts, and,

The brief comparative features of the two schemes are :

PARTICULARS FCNR NRE
Who can open accounts =NRIs
Joint accounts of two or more NRIs = Permitted
Joint account with Residents =Not permitted
Nomination facility =Available
Currency of account =USD, GBP, EUR, JPY,AUD,CAD =Indian Rupees
Repatriability =Principal and interest repatriable
Type of account =Term deposits ="Savings, Current and Term deposits
Period =12 months to 5 years =12 months to 7 years
Minimum amount =USD 1,500
GBP 1,000
EUR 1,500
JPY 50,000
AUD 1,000
CAD 1,000=-
Requirements for opening an Account

• COPY OF PASSPORT.
• PHOTOGRAPHS OF ACCOUNT HOLDER/S.
• SIGNATURES TO BE VERIFIED BY INDIAN EMBASSY/KNOWN BANKERS.
• FULL PARTICULARS AS PROVIDED IN THE APPLICATION FORM
NOMINATION.
• REMITTANCE SHOULD BE IN FOREIGN CURRENCY.
• (PLEASE NOTE TO GIVE OVERSEAS AND LOCAL ADDRESSES, CONTACT
PHONE/FAX NUMBERS, E.MAIL ADDRESS ETC…)

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