‘UCO DHAN-VARSHA’

A limited duration Fixed Deposit Scheme providing benefits of high returns on a fixed deposit period of 444 days has been introduced by the Bank. The scheme would be effective from May 10th, 2012 and remain valid up to June 30th, 2012 and would carry an interest of 9.25% per annum with special incentive for Senior Citizens/Staff/Ex-Staff/Senior Citizens & Ex-Staff, as usual. The minimum amount of deposit under the Scheme would be Rs. 5000/-and thereafter in multiples of Rs.1000/- with a maximum amount of Rs.1 crore.

Salient features of the new fixed deposit scheme ‘UCO DHAN-VARSHA’ are as under:

1. Title of the Scheme : UCO Dhan-Varsha Fixed Deposit Scheme

2. Period of operation of the Scheme :  The scheme would be applicable from May 10th, 2012 and will remain valid up to June 30th, 2012. However, the Bank would reserve the right to modify, withdraw or extend the scheme anytime without any prior notice.

3. Eligibility to Open Account : Eligible Depositors under the Scheme would be same as eligible depositors in Fixed Deposit Scheme currently available in the Bank.

4. Period of Deposit : 444 days

5. Amount of Deposit : Minimum Amount: ` 5000/- and thereafter in multiples of `1000/-. Maximum Amount: ` 1crore.

6. Rate of Interest 9.25% per annum compounded quarterly.

The quarterly compounding would be done for the first four quarters and simple rate of interest would be paid on the compounded amount after the four quarters for the remaining number of days of the above deposit period.

In addition to the payment of interest along with the principal at the time of maturity, Interest payment (at the option of the customer) is allowed also at quarterly rests.

7. Premature Withdrawal: In all cases of premature withdrawals, the interest would be payable at 1% below the applicable rate under the normal fixed deposits for the period for which the deposit has remained with the Bank as on the date of deposit or present rate, whichever is lower.

8. Loan/Overdraft against the Deposits:

Facility for availing loan/overdraft against Deposits under the Scheme would be available as per existing guidelines for availing loan/overdraft against Bank’s own Fixed Deposits.

9. Nomination: The facility of nomination would be available under the Scheme.

10. Payment to Nominee/ Legal Heirs:

In the event of the death of the depositor, the deposit would be paid to the nominee/legal heirs as per the existing rules.

11. Participating Branches: All branches of the Bank would be authorized to open the Deposit Accounts under the Scheme.

12. Application Form:

The existing Application Form for Fixed Deposits is to be used for accepting deposits under the Scheme.

The branches shall invariably take an undertaking from customers stating that “I have read, understood and accept the terms and conditions of the UCO Dhan-Varsha Fixed Deposit Scheme”.

13. Issue of Term Deposit Receipt:

The branch shall issue a Deposit Receipt for the deposit received under the Scheme on our usual form for the Fixed Deposit Receipt.

A Rubber Stamp stating “Issued under UCO Dhan-Varsha Fixed Deposit Scheme” is to be invariably affixed by branches.

14. Automatic Renewals:

No auto renewal is permitted under ‘UCO Dhan-Varsha Fixed Deposit Scheme’.

However, wherever no specific instructions are received from the depositors. maturity proceeds will be renewed for a period of 1 year under Banks Normal Term Deposit Scheme.

15. Tax Implications:

Tax would be deductible at source as per the prevailing Income Tax rules.

16. Transferability:

Transfer of Fixed Deposit under the Scheme within any branch of the Bank would be permissible without any charge as per the existing procedure.

17. Special benefits for Senior Citizen/ Staff / Ex-Staff/Senior Citizen & Ex-Staff:

Deposits from these categories of depositors shall be allowed incentive as per the existing norms. Accordingly, the applicable rates for these special categories would be as under:

Senior Citizen : Additional 0.50% or @ 9.75%

Staff : Additional 1.00% or @ 10.25%

Ex-Staff : Additional 1.00% or @ 10.25%

Ex-Staff Sr. Citizen : Additional 1.25% or @ 10.50%

The overall amount ceiling for Ex-Staff/ Ex-Staff Senior Citizen for being eligible for higher rate under the scheme shall be equal to the terminal benefits plus `10 lac, as usual.

18. Acceptance of Deposits under the Scheme:

Deposits under the Scheme would be accepted only when accruing as a fresh Fixed Deposit for the Bank.

In other words, the existing Fixed Deposits cannot be directly renewed under the scheme through a premature extension as usual and the existing Fixed Depositors who wish to convert into the scheme would have to compulsorily take premature payment of their existing deposits and pay the usual penal charges for premature closure.

However, any existing Fixed Deposit maturing during the scheme period would be eligible to enter into the scheme as it would be a fresh deposit for the Bank under the Scheme.

19. Applicability of normal Fixed Deposit Rules:

Other than the special terms and conditions of the scheme, the deposits under the scheme would be governed as per the normal Fixed Deposit Rules of the Bank.

THANKS!!!