Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: form 3cd :: VAT Audit :: ACCOUNTING STANDARDS :: VAT RATES :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: empanelment :: TAX RATES - GOODS TAXABLE @ 4%
 
 
« Latest Circulars »
  RBI-Enhancement of withdrawal limits from ATMs and Current Accounts
 Auction of Government of India Dated Securities January 16, 2017
  Withdrawal of Legal Tender Character of the Old Bank Notes in the denominations of ₹ 500 and ₹ 1000 and The Specified Bank Notes (Cessation of Liabilities) Ordinance 2016
 RBI-Career Opportunities at Reserve Bank Information Technology Pvt Ltd
 RBI-Appointment of Director, National Institute of Bank Management (NIBM), Pune (Revised)
 RBI-Enhancement of withdrawal limits from ATMs and Current Accounts
  Evidence of Import under Import Data Processing and Monitoring System (IDPMS)
 Evidence of Import under Import Data Processing and Monitoring System (IDPMS)
 Issuance of 35 days and 49 days Cash Management Bills under Market Stabilisation Scheme (MSS) on January 13, 2017
 RBI to conduct Overnight Variable Rate Reverse Repo Auction under LAF on January 12, 2017 between 4.00 pm and 4.30 pm
  Macro and Micro Drivers of Business Potential of IFSCs in India (Dr. Urjit R. Patel, Governor – January 11, 2017 – at Gandhinagar, Gujarat)

RRB/StCB/DCCB - Repayment of Term/Fixed Deposits with 'Either or Survivor' or 'Former or Survivor' Mandate
August, 28th 2012

RBI/2012-13/176
RPCD.CO.RRB.RCB.BC.No.25/03.05.33/2012-13

August 23, 2012

All Regional Rural Banks / State and Central Co-operative Banks

Dear Sir,

Repayment of Term/Fixed Deposits with 'Either or Survivor' or 'Former or Survivor' Mandate

It has come to our notice that some Regional Rural Banks (RRBs) / State and Central Co-operative Banks (StCBs/DCCBs) insist on the signatures of both the depositors to allow repayment of money in fixed/term deposits, though the deposit account is opened with operating instructions (sometimes called repayment instructions), Either or Survivor or Former or Survivor. Such insistence on the signatures of both the depositors has the effect of making the mandate given by the depositors redundant. This, in turn, results in unjustified delays and allegations of poor customer service.

2. In this connection, it is clarified that if fixed/term deposit accounts are opened with operating instructions Either or Survivor, the signatures of both the depositors need not be obtained for payment of the amount of the deposits on maturity. However, the signatures of both the depositors may have to be obtained, in case the deposit is to be paid before maturity. If the operating instruction is Either or Survivor and one of the depositors expires before the maturity, no pre-payment of the fixed/term deposit may be allowed without the concurrence of the legal heirs of the deceased joint holder. This, however, would not stand in the way of making payment to the survivor on maturity.

3. In case the mandate is Former or Survivor, the Former alone can operate/withdraw the matured amount of the fixed/term deposit, when both the depositors are alive. However, the signature of both the depositors may have to be obtained, in case the deposit is to be paid before maturity. If the former expires before the maturity of the fixed/term deposit, the Survivor can withdraw the deposit on maturity. Premature withdrawal would however require the consent of both the parties, when both of them are alive, and that of the surviving depositor and the legal heirs of the deceased in case of death of one of the depositors.

4. If the joint depositors prefer to allow premature withdrawals of fixed/term deposits also in accordance with the mandate of Either or Survivor or Former or Survivor, as the case may be, it would be open to RRBs/StCBs/DCCBs to do so, provided they have taken a specific joint mandate from the depositors for the said purpose. In this regard you may also refer to para 3 of ourcircular RPCD.CO.RRB.BC.22/03.05.33/2005-06 dated July 19, 2005 and RPCD.CO.RF.BC.No.12/07.38.01/2005-06 dated July 12, 2005 in terms of which, RRBs/StCBs/DCCBs were advised to incorporate a clause in the account opening form itself to the effect that in the event of death of the depositor, premature termination of term deposits would be allowed subject to the conditions which they may specify therein. RRBs/StCBs/DCCBs were also advised to give wide publicity to the above and provide guidance to deposit account holders in this regard.

5. However, many of the RRBs/StCBs/DCCBs s have neither incorporated such a clause in the account opening form nor have they taken adequate measures to make the customers aware of the facility of such mandate, thereby putting the surviving deposit account holders to unnecessary inconvenience. RRBs/StCBs/DCCBs are, therefore, advised to invariably incorporate the aforesaid clause in the account opening form and also inform their existing as well as future term deposit holders about the availability of such an option.

6. The joint deposit holders may be permitted to give the joint mandate allowing premature withdrawals of fixed/term deposits also in accordance with the mandate of Either or Survivor or Former or Survivor either at the time of placing fixed deposit or anytime subsequently during the term/tenure of the deposit. If such a mandate is obtained, RRBs/StCBs/DCCBs can allow premature withdrawal of term/fixed deposits by the surviving depositor without seeking the concurrence of the legal heirs of the deceased joint deposit holder. It is also reiterated that such premature withdrawal would not attract any penal charge.

7. The clarification provided in paras 5 and 6 of this circular supersede para 3 of our circular RPCD.CO.RRB.BC.22/ 03.05.33/2005-06 dated July 19, 2005 and RPCD.CO.RF.BC.No.12/07.38.01/2005-06 dated July 12, 2005.

Yours faithfully,

(C.D.Srinivasan)
Chief General Manager

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System development CMS development Content Management Solutions CMS Solutions Content Management Services CMS Services CMS Software

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions