UCO No-frills Savings Bank Account

In order to include a larger cross-section of the population, who are at the bottom of the pyramid, to avail of the banking services who could not avail of the same on account of some restrictive clauses, namely, minimum initial deposit for opening of the account which is difficult to arrange by such population, maintenance of minimum balance failing which charges are levied etc., it has been felt expedient to introduce a new Savings Deposit Scheme titled "UCO No-frills Savings Bank Account". The salient features of the scheme so designed are as follows :

1. Title of the Scheme - "UCO No-frills Savings Bank Account".
     
2. Initial deposit for opening the account and maintenance of minimum balance - The account can be opened with a minimum initial deposit of Rs.5/-. In case of cheque facility being availed by the account holder, the minimum initial balance should be Rs.250/-. In case of need, the balance in the account may be allowed to go even below the minimum initial deposit and the account may continue even with "Zero" balance.

Opening of Account under the scheme - The scheme is introduced in all metro, urban, semi-urban and rural categories of branches without making any differentiation with regard to amounts of initial deposit and maintenance of minimum balance as prevailing at present for opening of Savings Bank Accounts.

3. Eligibility for opening "No-frills Savings Bank Account" - The eligibility for opening "No-frills" Account will be the same as that for opening an ordinary Savings Bank Account. Persons above the age 10 and below 18 years and are able to read and write may also open a minor no-frills savings account in his own name or jointly with any other person.
     
4. Restriction of number of withdrawals/debit entries in "No-frills" Account - upto 25 debit entries in a half-year are allowed free in those accounts. In case the debit entries exceed 25 during a half-year, charges will be levied @ Rs.3/- per additional entry during a half-year.
    
5. Charges to be levied -
    
1. For accounts opened with initial deposits of Rs.250/- for having Cheque Book facility, in case the balance comes down below the initial deposit even upto zero balance, usual charge for non-maintenance of initial deposit shall be levied.
2. For standing instructions - no charge will be levied.
3. Collection of cheques and issuance of Demand Drafts/MTs are permitted in those accounts and normal charges are to be levied for those services.
4. For accounts with cheque book facility, one cheque book of 20 leaves to be provided free of charge in each year. Any additional requirement of cheque leaves during a year will attract a charge of Rs.2/- per cheque leaf.
5. No incidental and folio charges will be levied in these accounts.
6. All other charges for services as presently applicable for normal Savings Bank Account are to be levied and recovered.
      
6. Compliance of KYC Guidelines - Simplified KYC procedures for opening of Accounts as advised through Bank's Circular No. CHO/SUA/39/2005-06 dated 29.08.2005 may be adhered to. The salient features of the Circular are mentioned hereunder for ready reference :

In case, the person concerned who wants to open the account is not able to produce any of the specified documents, required to be verified at the time of opening of account to establish the identity and address of the customer, the account may be opened for those persons subject to compliance of the following :

1. Introduction from another account holder who has been subjected to full KYC procedure. The introducer's account with the bank should be at least six month old and should show satisfactory transactions. Photographs of the customer who proposes to open the account and also his address need to be certified by the introducer.

or

2. Furnishing any other evidence as to the identity and address of the customer to the satisfaction of the bank.

However, while opening such accounts the customer should be made aware that if at any point of time, the balance in all his/her accounts with the bank (taken together) exceeds Rs.50,000/- or total credits in the accounts exceed Rs.1.00 lakh in a year, no further transaction will be permitted in the account until full KYC procedure in regard to verification of identity and address of the customer through the documents as specified are complied with.

UCO- No Frill Savings Account

The salient features of the scheme are as follows:

1.    INITIAL DEPOSIT FOR OPENING THE ACCOUNT: The account can be opened with a minimum initial deposit of Rs. 5/-.  In case of cheque facility being availed by the account holder, the minimum initial balance should be Rs. 250/-

2.    MAINTENANCE OF MINIMUM BALANCE: The account may be allowed to go even below the minimum initial deposit and the account may continue even with “Zero” balance.

3.    Opening of Account under the scheme – The scheme is introduced in all metro, urban, semi-urban and rural categories of branches without making any differentiation with regard to amounts of initial deposit and maintenance of minimum balance as prevailing at present for opening of Savings Bank Accounts.

4.    ELIGIBILITY FOR OPENING ACCOUNT: (a) The eligibility for opening “No-frills” Account is the same as that for opening general Savings Bank Account.  (b) Minors above the age 10 and below 18 years who are able to read and write may also open a minor no-frills savings account in his own name or jointly with any other person.

5.    RESTRICTION OF NUMBER OF WITHDRAWALS: In this account up to 25 withdrawals in a half-year are allowed free.  In case the withdrawals exceed 25, during a half-year, charge will be levied @Rs.3/- per additional entry during a half-year.

6.    CHARGES TO BE LEVIED: For accounts opened with initial deposits of Rs. 250/- for having Cheque Book facility, in case the balance comes down below the initial deposit even up to zero balance, usual charge for non-maintenance of initial deposit shall be levied.

7.    Standing Instructions – No charge will be levied.

8.    Collection of cheques and issuance of Demand Drafts/MTs are permitted in those accounts and normal charges are to be levied for those services.

9.    For accounts with cheque book facility, one cheque book of 20 leaves to be provided free of charge in each year.  Any additional requirement of cheques leaves during a year will attract a charge of Rs.2/- per cheque leaf.

1.    COMPLIANCE OF KYC GUIDELINES: If a person wants to open the account and is not able to produce any of the specified documents, required to be verified at the time of opening of account to establish the identity and address, the account may be opened for that person, subject to compliance of the following: (a) Introduction from another account holder who has been subjected to full KYC procedure.  The introducer’s account with the Bank should be at least six month old and should show satisfactory transactions.  (b) Photographs of the customer who wants to open the account. (c) Address of such persons should be certified by the introducer or furnishing any other evidence as to the identity and address of the customer to the satisfaction of the bank.

Note: The customer should know that if at any point of time the balance in all his/her accounts with the bank (taken together) exceeds Rs. 50,000/- or the total credits in the accounts exceed Rs. 1.00 lakh in a year, no further transaction will be permitted in the account until full KYC procedure of the customers are complied with.

UCO Star Savings Account

The salient features of the UCO Star Savings Account are as below:

1.    Minimum Monthly Average Balance  (estimated as average of daily balance Rs. 25000/-)

2.    Charges on  Non-Maintenance of  Monthly Minimum Balance --Rs. 100/- per month

3.    Multicity/personalized Cheque book ---Up to 1 booklets free per quarter (20 leaves), after that Rs. 3 per leaf

4.    Sweep in/out facility Above Rs.25000

5.    DD/TT/MT/RTGS (apart from RBI charges) : 15% discount

6.    Pay Orders: No charges only out of pocket expenses Rs.10

7.    Immediate Credit of Outstation Cheques Up to Rs 15000 in 1st Yr & Up to Rs. 25,000 after 1 yr of satisfactory operation.

8.    Standing Instructions : free

9.    Stop Payment Charges-Free

10. Statement of Account if required in addition to pass book--Free- for last 1 yr.

11. Loan Processing Charges on retail loans (Provided the account is maintained in the same tier at least for a period of 1 year)--50% discount

12. Interest on Retail loans Regular rate

13. Discount on lockers15% waiver

14. Home Delivery of DDs Home Delivery of Pass books/ Cheque books  (Courier charges will be recovered)

15. Consultation on Insurance/Mutual fund (at customer premises) by Bank’s specified officers

16. Charges for non maintenance of Minimum Balance Rs.250 per month

17. Charges for closure within 1 year Rs.250.00

Savings Bank Account for Individuals

The advantages of a Savings Bank account are:

a) It helps inculcating the habit of Savings and thrift among people.

b) It facilitates making payments by cheques

c) Immediate Credit of outstation cheques upto a certain amount is made.

d) It fetches reasonable interest

e) Pass Book serves as a record of earnings and expenditure

f) Customers can avail the facility of standing instructions

g) Nomination system ensures social security.

Introduction of Savings Bank Accounts

All savings Bank accounts are to be properly introduced by some person known to the bank. The branches are requested to make their own enquiries about the existence of the account holder, his integrity and respectability before they open an account in his name and consider extending any facility of collection and of discount of cheques. Introduction does not simply mean obtaining signature of a third person known to it as introducer on the Account Opening Form. Reserve Bank of India has also directed that Bank should invariably insist upon prospective depositors to furnish introduction for opening Savings Bank Accounts.

A Savings Bank Account be opened

1. a) By individual in his/her own name

b) More than one individual jointly

c) A guardian on behalf of Minor

d) By a minor who has attained the age of 10 years and is literate.

2. A Savings Bank Account can be opened in the name of illiterate person to be operated by his/her thumb impression.

3. A Blind Person

4. Clubs, associations/registered or unregistered/charitable and religious institutions, trust, local bodies, primary co-operative societies and such other bodies of identical nature.

5. A HUF provided it is not a business concern.

It may be noted that a Savings Bank Account cannot be opened in the name of a trading or business concern, whether such concern is a proprietory or a partnership firm, a company or an association or a HUF.

No Savings account to be opened in case of

a) Government department and Bodies, that depends upon budgetary allocation for performance of their function.

b) Municipal corporation or Municipal committees

c) Panchayat Samities

d) State Housing Boards

e) Water and Sewarage/Drainage Board

f) State Trust Books Publishing Corporation

g) Societies

h) Metropolitan Development Authority

i) State/District Level Housing Co-operative Societies

j) Any trading or business concern

k) Any professional concern (e.g. firms of Chartered Accountants, Lawyers etc.)

l) Political Parties

But there are exceptions to above and the following bodies/authorities/agencies may open Savings Bank Accounts.

a) Primary Co-operative Credit Society which is being financed by the Bank.

b) Small Farmers Development Agency (SFDA)

c) Fish Farmer’s Development Agency (FFDA)

d) Margin Farmers’ & Agricultural Labourers’ Agencies (MFAL)

e) Drought Prone Area Programme (DPAP)

f) District Development Agency (DDA)

g) District Rural Development Agency/Society/(DRDA/DRDS)

h) Integrated Rural Development Programme (IRDP)

i) Development of Women & Children in Rural Area (DWCR)

j) Self Help Group (SHG), registered or unregistered

k) Farmers Club/Vikas Volunteer Vahini (VVV), Informal groups of rural farmers or entrepreneurs.

l) Integrated Tribal Development Agency (ITDA)

m) Agriculture Produce Market Committee (APMC)

n) Khadi & Village Industries Boards

o) Societies registered under Societies Registration Act, 1860.

p) Companies Licenced by Central Government under section 25 of Companies Act, 1956 and permitted not to add Limited or Private Ltd.

q) Institution other than those in 4.7 and whose entire income is exempt from payment of Income Tax under the Income Tax Act, 1961.

r) Nagar Panchayats, Nagar Palikas and Municipal Bodies for placement of funds, given to them by Government under Nehru Rozgar Yojna towards the component of (i) subsidy and (ii) training and infrastructure under schemes for Urban Micro Enterprises (SUME) and Scheme for urban Wage Employment (SUWE).

s) The Zilla Parishad/Gram Panchayats can open Savings Bank accounts in respect of Jawahar Rojgar Yojna funds scheme and for funds released for implementation of various rural development/welfare programmes and/or Subsidy/Margin Money Linked Programmes sponsored by the State Government/Government of India.

t) Collector & District Magistrate/District Commissioners/DRDA may open SB account in respect of funds released for implementation of Member of Parliament, Local Area Development Scheme (MPLADS).

u) Government Department/Bodies/Agencies may be allowed to open Savings Bank Accounts in respect of funds released through grants or as subsidies for implementation of various developmental programmes/schemes, sponsored by Central Government and State Governments, on production of an authorisation to the Bank from the respective Government Departments certifying that the concerned Government department or Body has been permitted to open Savings Bank Account.

Minimum Balance:

The Minimum amount to Open a Savings Bank account and the minimum balance to be maintained therein is furnished hereunder:

1.    With Cheque Book Facility other than Pension Accounts

                     Metropolitan Urban Semi-Urban Rural

Individuals    1000               1000      500             250

Others           1500              1500      1000            250

2.    Without Cheque Book Facility other than Pension Accounts

Individuals     500                 500         250            100

3.    Pension Accounts (with Cheque Book Facility)

Individuals     250                  100         100            100

4.    Pension Accounts (without Cheque Book Facility)

Individuals       50                    50           50              50

Opening of Account:

The prospective account holder should be required to fill up and sign the Account Opening Form in the presence of Officer concerned. He should also be supplied with a copy of Savings Bank Account Rules.

In case of individual(s), intending to open SB Account Form DS-1A (Combined) is to be obtained.

In case of accounts of minors, declaration/proof of date of birth of the minor should be obtained.

In case of account holder signing in vernacular, indemnity Letter (Form D-43) should be obtained.

The Vernacular Signature Indemnity Letter (D-43) should be obtained in Savings Bank accounts, irrespective of the fact whether the account is operated upon by means of withdrawal forms or by cheques.

The Vernacular Signature Indemnity Letter in respect of Joint Savings Bank Accounts must be signed by all the joint account holders and not by the person(s) who are to operate on the account by signing in vernacular.

As far as possible, the person witnessing the Vernacular Signature Indemnity Letter should be an independent person known to the bank. If, however, such a person is not available the Manager may put his signature as a witness after the contents of the Indemnity Letter have been explained to the account holder.

Note: Vernacular Indemnity Letter (D-43) need not be insisted upon in cases where the accounts are opened and operated on under signature in the regional language and it is possible to have such signature verified by an authorized Officer at the branch.

In case account holder wants to avail of facility of collection of cheques, drafts etc., Indemnity/Letter (Form B-40) should also be obtained.

In case of accounts of illiterate persons photographs of account holder must be obtained.

The UCO bank has introduced five value added savings scheme namely, UCO Royal, UCO Elite, UCO Basic, UCO Chhatra and UCO Retiree. While the first three schemes are based on the balance maintained in the savings account, the last two schemes are meant for special types of customers, students and senior citizens respectively.

Savings Bank Account Rules

1. Any person approved by the Bank may open a Savings Bank Account. He/she has to sign the relative Account Opening Form in presence of authorised official of the Bank upon agreeing to comply with the rules governing Savings Bank Accounts and providing satisfactory introduction.

2. The Bank will not open an account which is to be operated under a cross mark or signature by the hand of another person.

3. Two Passport size photographs (three, if the account is to be operated by thumb impression) are required to be submitted by the depositors at the time of opening of a Savings Bank Account.

4. Every depositor while opening a Savings Bank Account shall be required to furnish PAN/GIR No. on the Account Opening Form if the depositor is an Income Tax Assessee, or if not, to give declaration on Form No. 60/61.

5. Savings Bank Account can also be opened by a natural guardian i.e. father or mother or by a guardian appointed by the Court on behalf of a minor. Guardian opening an Account in the name of minor under his/her guardianship shall have to give a declaration that the funds withdrawn in the account of the minor, from time to time, will be utilised for the benefit of the minor.

6. The Bank reserves the right to verify the details given in the Account Opening Form through any third party, if necessary.

7. SB Accounts can not be opened by any trading or business concern, regardless of its constitution.

However, Clubs, Associations, Charitable Institutions etc. may open SB accounts subject to verification of their rules and bye-laws copies of which are to be furnished to Bank before opening such account.

8. More than one SB Account cannot be opened by an individual singly without special consent of the Bank. Joint accounts may be opened by two or more persons where more of operation must be specified.

9. Minors, having attained the age of 10 years and able to read and write, are allowed to open account singly, but no cheque book will be issued against such account.

10. In case of minor’s account operated by the guardian, the right of the guardian to operate the account will cease upon the minor attaining majority. Any balance in the account will be deemed to be the exclusive property of the minor who has attained majority, and further withdrawals from the account will be allowed to the erstwhile minor alone after completing procedural formalities.

11. Cash and cheque to be deposited in the Bank should be handed over to the respective counters and no individual outside the respective counters have any authority to receive them.

12. The total number of withdrawals from the account whether by cheque or otherwise will not exceed 50 per half year or such ceiling as may be decided by the Bank. For additional withdrawals, a service charge at the rate decided by the Bank will be recovered from the account.

13. Cheque-book will be issued if the account is properly introduced. The SB Account holder will be given 60 cheque leaves free of cost in a year as per the present norms of the Bank and this is subject to change as may be decided by the Bank. For additional cheque leaves, service charge as may be decided by the Bank, will be levied. The customer may at the time of opening the account opt not to use cheque books.

Account holder should carefully note that while issuing a cheque, he/she should ensure that sufficient balance is maintained in the account. Issuing cheque in anticipation of funds to be credited to the account is not permitted. Also, cheques issued and dishonoured due to account holder’s fault such as insufficiency of fund/cheques drawn irregularly etc. will attract, apart from service charge, levied by the bank, penal provision under the law of the land.

15. Mutilated, post dated, stale and irregularly drawn cheque as also cheques containing extraneous matter will be refused payment. Any alteration on the cheques/withdrawal slip should be authenticated by the full signature of the drawer.

16. When depositing cheques for credit to an account depositors are required to cross them before handling over the same for collection. Cheques deposited in the account and returned unpaid will attract service charge at the rate decided by the Bank plus interest as applicable.

17. Instruments such as Cheques, Demand Drafts and Dividend/Interest Warrants will be accepted for credit of an account only when the account has been properly introduced and such instruments must be drawn in favour of the account holder and not endorsed to him/her.

18. The customer has to maintain minimum balance in the account as may be prescribed by the Bank from time to time. Failure to maintain such minimum balance in the account will attract penalty as may be levied by the Bank.

19. For accounts operated by thumb impression,, the depositor must personally visit the Bank along with the passbook to withdraw money from the account.

20. If the passbook is lost and a duplicate thereof is sought, the depositor will have to pay the prescribed charges for a duplicate passbook.

21. The passbook and the cheque book are very important documents. At the time of receiving the cheque book, the account holder should count the cheques therein and draw the attention of the Bank if any cheque is missing therein. The passbook and the cheque book must be kept in secured possession of the account holder. Any loss must be brought to the notice of the Bank forthwith.

22. Bank will register instruction from the drawer of a cheque to stop payment of it but it cannot undertake any responsibilities in case such instructions are overlooked.

23. If the account is closed within a year from the date of its opening, a prescribed charge will be levied.

24. Bank reserves the right to close any account with prior intimation if it is not operated satisfactorily.

The Bank’s decision is such matter will be final.

25. Nomination is accepted in favour of a single individual only.

26. The Bank reserves the right to alter or add to these rules and such alteration and additions shall be binding on the account holders.

"UCO No-frills Savings Bank Account"

In order to include a larger cross-section of the population, who are at the bottom of the pyramid, to avail of the banking services who could not avail of the same on account of some restrictive clauses, namely, minimum initial deposit for opening of the account which is difficult to arrange by such population, maintenance of minimum balance failing which charges are levied etc., it has been felt expedient to introduce a new Savings Deposit Scheme titled "UCO No-frills Savings Bank Account".

The salient features of the scheme so designed are as follows:

1.         Title of the Scheme - "UCO No-frills Savings Bank Account".

2.         Initial deposit for opening the account and maintenance of minimum balance - The account can be opened with a minimum initial deposit of Rs.5/-. In case of cheque facility being availed by the account holder, the minimum initial balance should be Rs.250/-. In case of need, the balance in the account may be allowed to go even below the minimum initial deposit and the account may continue even with "Zero" balance.

Opening of Account under the scheme - The scheme is introduced in all metro, urban, semi-urban and rural categories of branches without making any differentiation with regard to amounts of initial deposit and maintenance of minimum balance as prevailing at present for opening of Savings Bank Accounts.

3.         Eligibility for opening "No-frills Savings Bank Account" - The eligibility for opening "No-frills" Account will be the same as that for opening an ordinary Savings Bank Account. Persons above the age 10 and below 18 years and are able to read and write may also open a minor no-frills savings account in his own name or jointly with any other person.

4.         Restriction of number of withdrawals/debit entries in "No-frills" Account - up to 25 debit entries in a half-year are allowed free in those accounts. In case the debit entries exceed 25 during a half-year, charges will be levied @ Rs.3/- per additional entry during a half-year.

 

5.         Charges to be levied -

a.         For accounts opened with initial deposits of Rs.250/- for having Cheque Book facility, in case the balance comes down below the initial deposit even upto zero balance, usual charge for non-maintenance of initial deposit shall be levied.

b.         For standing instructions - no charge will be levied.

c.         Collection of cheques and issuance of Demand Drafts/MTs are permitted in those accounts and normal charges are to be levied for those services.

d.         For accounts with cheque book facility, one cheque book of 20 leaves to be provided free of charge in each year. Any additional requirement of cheque leaves during a year will attract a charge of Rs.2/- per cheque leaf.

e.         No incidental and folio charges will be levied in these accounts.

f.          All other charges for services as presently applicable for normal Savings Bank Account are to be levied and recovered.

6.         Compliance of KYC Guidelines - Simplified KYC procedures for opening of Accounts as advised through Bank's Circular No. CHO/SUA/39/2005-06 dated 29.08.2005 may be adhered to. The salient features of the Circular are mentioned hereunder for ready reference:

In case, the person concerned who wants to open the account is not able to produce any of the specified documents, required to be verified at the time of opening of account to establish the identity and address of the customer, the account may be opened for those persons subject to compliance of the following:

a.                   Introduction from another account holder who has been subjected to full KYC procedure. The introducer's account with the bank should be at least six month old and should show satisfactory transactions. Photographs of the customer who proposes to open the account and also his address need to be certified by the introducer.

or

b.         Furnishing any other evidence as to the identity and address of the customer to the satisfaction of the bank.

However, while opening such accounts the customer should be made aware that if at any point of time, the balance in all his/her accounts with the bank (taken together) exceeds Rs.50,000/- or total credits in the accounts exceed Rs.1.00 lakh in a year, no further transaction will be permitted in the account until full KYC procedure in regard to verification of identity and address of the customer through the documents as specified are complied with.