1 In case if a Savings account holders maintaining large balances
want to transfer the balance in SB account to Fixed Deposit scheme
automatically to get higher rate of interest and also in case
of need the funds gain be transferred to clear the cheques etc
, is there any facility available with tha Bank ?
Yes. For this purpose there is a facility available i.e Flexi
Deposit scheme. Savings account holders can opt for this scheme
to avail the above benefits.
What are the Nomination facilities for different types of deposits
A. Nomination facility is available to all types of deposit
accounts irrespective of the nomenclature used by different banks.
3. Is Nomination of more than one person is available in case
of joint deposit accounts ?
A. There cannot be more than one nominee in case of joint
4. What about Nomination facility in respect of articles kept
in safe deposit custody jointly ?
A. Nomination facility is available only in case of individual
depositor and not in respect of persons jointly depositing articles
for safe custody.
5. Who is Non-Resident Indian (NRI)?
A. Non-Resident Indian Means:
A person resident outside India who is a citizen of India i.e.
Indian citizens who proceed abroad for employment or for carrying
on any business or vocation or for any other purpose in circumstances
indicating indefinite period of stay outside India.
ii. Indian citizens working abroad on assignments with Foreign
Governments, Government Agencies or International/ Multinational
Agencies like United Nations Organisation(UNO), International
Monetary Fund (IMF), World Bank etc.
iii. Officials of Central and State Governments and Public Sector
Undertakings deputed abroad on assignments with Foreign Government
Agencies/ Organisations or posted to their own offices including
Indian Diplomatic Missions abroad.
A person of Indian origin who is a citizen of any other country
other than Bangladesh or Pakistan, if
He, at any time, held an Indian passport or
ii. He or either of his parents or any of his grand parents was
a citizen of India by virtue of Constitution of India or Citizenship
Act 1955 (57 of 1955)
iii. The person is a spouse of an Indian Citizen or a person referred
to in sub clause b (i) or (ii) above.
How can an NRI open an account?
The easiest way of opening an account would be to contact the
nearest branch of Bombay Mercantile Co-op. Bank who would gladly
assist in fulfilling the required formalities and opening an account.
If Bombay Mercantile Co-op. Bank branch is away, then following
documents may be sent to the branch where account is desired to
be opened :-
may be introduced by an existing customer of the branch or may
be verified by present banker or by Embassy Officials abroad.
Copies of important pages of passport (containing name, signature,
birth-date, place/ date of issue, expiry date etc) duly authenticated
by Notary Public/ Officials of Indian Embassy.
Two passport size photographs with signatures on reverse
Remittance for opening an account.
Q-7 Can a NRI grant power of Attorney to a resident?
An NRI is free to grant Power of Attorney to a Resident. However,
such Power of Attorney is restrictive. The Power of Attorney holder
can do local operations and give deposit renewal instructions.
Power of Attorney Holder can not instruct to transfer funds abroad.
What are the rules regarding pre-mature payments?
The Bank may permit payment of deposit before maturity. The rules
in this respect are broadly as under:
FCNR / NRE Scheme:
No interest is payable if the deposit is withdrawn before expiry
of minimum maturity of 12 months from the effective date of deposit.
· In other cases, interest is payable at a rate applicable
on the date of deposit for the period run or the contracted rates,
whichever is less, minus 1 % penalty in respect of NRE Deposits.
For FCNR Deposits, interest is payable at a rate applicable on
the date of the deposit for the period run minus 1 % penalty.
However, if the applicable rate is less than 1%, no deduction
will be made from principal amount.
No interest is payable if the deposit is withdrawn before expiry
of 15 days in case of term deposit
· Interest is payable at a rate applicable on the date
of deposit for the period run or the contracted rate, whichever
is less, minus 1 % penalty.
Q.9 Is any interest payable on overdue deposits?
(1)FCNR / NRE Deposits schemes:
When renewal instructions are received by the branch where the
deposit account is maintained, within 14 days of the due date,
renewal with retrospective effect (i.e. from the due date) is
rate of interest payable on the amount of deposit so renewed will
be appropriate rate for the period of renewal as prevailing on
the date of maturity OR on the date when depositor seeks renewal
(i.e. date of renewal) whichever is lower.
When renewal instructions are received after 14 days from the
due date, renewal with retrospective effect (i.e. from the due
date) is not permitted. However, simple interest for the overdue
period is payable at 4 % p.a. or at minimum rate of interest for
the currency prevailing on the date of renewal, whichever is lower.
deposits can be renewed with retrospective effect (i.e. from the
due date), provided they are renewed for a minimum period of 15
days from the date of renewal.
What happens to the existing accounts of persons after they become
What are N.R.O. accounts?
The accounts of erstwhile Resident Indian are designated as Non-Resident
Ordinary (NRO) Accounts. NRIs can also open NRO accounts for collecting
their local accruals in India. The rates of interest on domestic
deposits are applicable to these accounts. Income Tax is deductible
at source on the interest earned.
upto USD 1 Mn. for any purpose per calendar year from the balances
in NRO Accounts is permitted subject to payment of applicable
taxes. The limit of USD 1 Mn. per year includes sale proceeds
of immovable properties held by NRIs/ PIOs for a period of 10
years. In case a property is sold after being held for less than
10 years, remittance can be made if the same proceeds have been
held by the NRI/PIO for the balance period.
What happens when an NRI becomes Resident?
As per prevailing exchange control regulations, NRI is required
to intimate his banker about change in his residential status
immediately on returning to India. His Rupee accounts are immediately
redesignated as resident Rupee accounts. Further, Rupee Term Deposits
are continued at the contracted rate of interest till due date.
FCNR deposits are permitted to be continued at the contracted
rates of interest till due date. NRIs are also at liberty to keep
the funds in US Dollars by opting for Resident Foreign Currency