a) Interest Rates prevailing on the date of remittance or on the date of maturity of old deposit in case of renewal will be applicable.
b) Interest on deposits on Scheme I will be paid on 1st of every month in the case of monthly interest payment scheme and on 1st of January, April, July and October in the case of Quarterly Interest Payment Scheme and on 1st of April in the case of Annual Interest Payment Scheme, through interest warrants drawn at par. However, collection charges payable to bankers for collection through their service centers shall be borne by the depositors. Interest will be paid by Electronic Clearing System (ECS) for cities whereever such facilities available. In respect of deposits received upto 15th of the month, interest for the first broken period will be sent on the first day of the next month. For deposits received after 15th, interest will be included in the interest for first full month / quarter.
c) Interest will be paid by Electronic Clearing System (ECS) for cities whereever such facilities available. The depositors shall furnish complete details of account number and bank in the application form. In the case of joint deposit, all cheques, interest warrants for payment of interest will be drawn in favour of the first named depositor and any discharge given by the said person for payment of interest shall be binding on all joint depositors.
d) Interest credited / paid under both the schemes exceeding the prescribed limit will be subject to deduction of tax at source at the rates in force from time to time in accordance with the Income Tax Act unless affidavit in form 15H/15G is produced (in duplicate) for each financial year separately or exemption certificate from the I.T.O. is produced by the depositor. Assessees should furnish PAN Number compulsorily.
e) Post dated interest warrants upto Rs.50,000/- per interest warrant will be issued for outstation depositors for each financial year. When availing loan or pre-closure of deposit, these have to be surrendered.
f) Service charge of Rs.10/- per warrant will be collected for issue of fresh interest warrants in lieu of stale / Duplicate warrants.