UCO Sowbhagya

* A new RD product-scheme titled ‘UCO Sowbhagya Recurring Deposit Scheme (RDUSS)’ –with VARIABLE monthly payment facility.

*‘UCO Sowbhagya Scheme’ offers all features of a Normal Recurring Deposit scheme with flexibility of varying monthly instalments.

* Period of Deposit - Minimum 12 months & Maximum period of Deposit 36 months only.

*Pattern of Deposit - Minimum amount 100/- and Maximum 10 lac in a month.

*Target segment- Business class segment and working population.

*Launch Date - ‘UCO Sowbhagya Recurring Deposit Scheme’ shall be launched at all Bank branches on February 29th, 2012.

In order to cater to the needs/requirement of every section of the society, it was felt that the Bank must also have a Recurring Deposit scheme with VARIABLE monthly installment facility for the prospective depositor’s, especially, for the Business Class segment and the working population whose monthly income is not fixed.

The new RD product titled- ‘UCO Sowbhagya Recurring Deposit Scheme’ offers all the features of a Normal Recurring Deposit with the flexibility of varying ones monthly installments. At the end of the maturity period, the customer shall receive the maturity amount representing the installment amount paid together with interest thereon.

The Scheme - UCO Sowbhagya Recurring Deposit Scheme (RDUSS)

1. Type of Account : Recurring Term Deposit Account

2. Who can open:

a) A person in his/her own name OR

b) Two or more person, in their joint names, who will be the beneficiaries either jointly or anyone or more among them or the survivor or the survivor of them

c) On behalf of a Minor, represented by their Natural Guardians or Guardians appointed by Court.

d) In the names of clubs, societies, associations, educational institutions, trusts, firms, partnerships provided they are registered and joint companies.

3. Available at: All CBS Bank Branches across India

4. Age of the Accountholder:

a) RDUSS may be opened by Resident Indians above 18 years of age.

b) In the name of minor singly, provided he/she attained the age of 10 years & can read and write.

5. Pattern of Deposit:

a) RDUSS account can be opened as under:-

Minimum amount ` 100/- in a month and Maximum amount ` 10 lac in a month.

b) Thereafter, monthly installment in variable amount but in multiples of ` 100/-.

c) Minimum one installment with no limit on number of deposits per month, however, the maximum amount that the depositor can remit in a month shall not exceed ` 10 lac.

6. Period of Deposit:

a) RDUSS Deposits would be accepted for a Minimum period of 12 months and Maximum period of 36 months only.

b) Deposits Period shall be in blocks of- 12 months, 24 months and upto 36 months.

Special Features embedded in RDUSS SN Particulars Features

1. Banks Inter Sol Charges (via Transfer or Cash Deposit):

Free Transactions - Intra-Bank/ Intra-city fund transfer charges/cash deposit for the credit of self RDUSS Account.

2. Standing Instructions (SI):

Free - Transfer of funds through SI from Current or Savings Bank Account to self RDUSS Account every month towards payment of monthly installments.

3. Transfer of Account:

Free - Transfer of RDUSS Account between our wide network of branches without any charges.

 Brief Operational Guidelines SN Particulars Features

1. Mode of Remittance – Monthly Installments

a) The remittance made across the counter for credit of a RDUSS account to be accompanied by the prescribed pay-in-slip supplied by the Bank.

b) The depositor may remit the installments Intra-Bank and Inter-city Bank branches to his RDUSS Account.

2. Rate of Interest:

As applicable and interest linked to bucket-size less than ` 15 lac of Normal Term Deposit Scheme and calculated on a daily product basis and compounded quarterly.

3. Payment of Installments - Preconditions

a) One month default, no penalty, however, if no amount is deposited during the second month & onwards, the installments should be deemed to have fallen in arrears, the Bank shall impose a penalty of ` 50/- for each month of default.

b) Penalty shall not be levied if installments are in default intermittently for more than one month provided the default is not for two consecutive months.

4. Foreclosure:

a) If a depositor desires to close the RDUSS Account prematurely, or the account is discontinued and installments cease to be remitted for continuous period of 6 months, for any reason, the amount of installments already paid will be repaid in one lump-sum along with interest for installments deposited with rate applicable on Term Deposit slab of less than ` 15 lac with penalty clause for the period run.

b) In case of premature closure of RDUSS before 12 months of its opening, an additional service charge of ` 50/- will be collected from the accountholder.

5. Pass-book:

To differentiate this new product from the Normal Recurring Deposit Scheme & UCO Sunshine Scheme, the Bank shall print new RDUSS Passbook for the prospective customers

6. Privileges for Senior Citizens / Staff / Ex-staff:

These categories of accountholders will be eligible for additional rate of interest (ROI) over and above applicable ROI relevant to Banks Term Deposit. 12 months and above and upto 36 months

a. Senior Citizen Account : 0.50 %

b. Staff /Ex-Staff Account : 1.00 % (all terms)

c. Ex-Staff and Senior Citizen Account : 1.25 %

(term 12 months to < 36 months)

d. Ex-Staff and Senior Citizen Account : 1.50 %

(term 36 months and above)

7. Date of Maturity:

30 days after the last amount deposited in the final month.

8. Loans: Loans shall be granted subject to a maximum of 90% of the RDUSS amount and the interest charged by the Bank will be 2% above the applicable rates.

9. Nomination:

The facility of nomination is available for RDUSS Accounts.

10. Payment of Maturity Proceeds:

Payment of maturity proceeds to customer(s) in his sole name or jointly with others, shall be made by way of Account Payee crossed Pay Order/Demand Draft or by way of credit to the Savings Bank or Current Account of the depositor(s).

11. Power to Amend Rules:

The Bank reserves the right to alter the rules from time to time, as circumstances demand.

12. Other Terms and Conditions:

As applicable for existing Recurring Deposit scheme of the Bank shall be applicable to UCO Sowbhagya Accounts also.

Notice:

“The Bank would not be required to deduct taxes on the interest payable on recurring deposit in the light of Section 194(A) (3) (vii) read with explanation 1 to Section 194A of the Income Tax Act”.

The gist of Section 194A of the Income Tax Act 1961 which contains provision for deduction of tax on any interest paid other than interest on securities is illustrated below : –

1. Clause (3) to Section 194A contain specific categories of interest payments on which taxes are not required to be withheld under Section 194A(1) of the IT Act. Sub-clause (vii) of Section 194A(3) states that taxes are not required to be withheld on such income credited or paid in respect of deposits other than time deposits with a banking company to which the Banking Regulation Act, 1949 applies.

2. Explanation 1 to Section 194A defines the term ‘time deposits’ as deposits (excluding recurring deposits) repayable on the expiry of fixed periods. The deposits collected under the ‘UCO Sowbhagya Recurring Deposit Scheme’ would be in the nature of ‘recurring deposits’ for the purposes of Income Tax Act, 1961 and as such no tax shall be deducted at source on the interest earned/payable.