SERVICES
PREAMBLE
One of the important functions of the Bank is to accept deposits from the public for the purpose of lending. In fact, depositors are the major stakeholders of the Banking System. The depositors and their interests form the key area of the regulatory framework for banking in India and this has been enshrined in the Banking Regulation Act, 1949. The Reserve Bank of India is empowered to issue directives / advice on interest rates on deposits and other aspects regarding conduct of deposit accounts from time to time. With liberalisation in the financial system and deregulation of interest rates, banks are now free to formulate deposit products within the broad guidelines issued by RBI. This policy document on deposits outlines the guiding principles in respect of formulation of various deposit products offered by the Bank and terms and conditions governing the conduct of the account. The document recognises the rights of depositors and aims at dissemination of information with regard to various aspects of acceptance of deposits from the members of the public, conduct and operations of various deposit accounts, payment of interest on various deposit accounts, closure of deposit accounts, method of disposal of deposits of deceased depositors, etc., for the benefit of customers. It is expected that this document will impart greater transparency in dealing with the individual customers and create awareness among customers of their rights. The ultimate objective is that the customer will get services they are rightfully entitled to receive without demand. While adopting this policy, the bank reiterates its commitments to individual customers outlined in Bankers' Fair Practice Code of Indian Banks Association.
Types of Deposit Accounts: -
While various deposit products offered by the Bank are assigned different names.
The deposit products can be categorised broadly into the following types.
Definition of major deposits schemes are: -
- Demand deposit means a deposit received by the Bank which can be withdrawn on demand.
- Savings deposit means a form of demand deposit which is subject to restrictions as to the number of withdrawals as also the amount of withdrawals permitted by the Bank during any specified period.
- "Term deposit means a deposit received by the Bank for a fixed period which can be withdrawn only after the expiry of the fixed period and include deposits such as Recurring / Fixed Deposits etc.
- "Current Account" means a form of demand deposit wherefrom withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount.
Account Opening and Operation of Deposit Accounts
- The Bank before opening any deposit account will carry out due diligence as required under Know Your Customer (KYC) and Anti Money Laundering (AML) guidelines issued by RBI and /or such other norms or procedures adopted by the Bank. If the decision to open an account of a prospective depositor requires clearance at a higher level, reasons for any delay in opening of the account will be informed to the customer and the final decision of the Bank will be conveyed at the earliest.
- The account opening forms and other material would be provided to the prospective depositor by the Bank. The same will contain details of information to be furnished and documents to be produced for verification and / or for record. It is expected of the Bank official opening the account, to explain the procedural formalities and provide necessary clarifications sought by the prospective depositor when he approaches for opening a deposit account. The Bank may also ask for additional documents if required for account opening.
- For deposit products like Savings Bank Account, No Frill Account and Current Deposit Account, the Bank may stipulate certain minimum balances to be maintained as part of terms and conditions governing operation of such accounts. Failure to maintain minimum balance in the account will attract levy of charges as specified by the Bank from time to time. For Savings Bank account, the Bank may also place restrictions on number of transactions, cash withdrawals, etc., for given period. Similarly, the Bank may specify charges for issue of cheque books, additional statement of accounts, duplicate pass book, folio charges, etc. All such details, regarding terms and conditions for operation of the accounts and schedule of charges for various services provided will be communicated to the prospective depositor while opening the account and is also enclosed in this service guide. These charges may change from time to time and the bank will inform the customer through the website www.dbs.com.
- Savings Bank Accounts can be opened by Individuals, HUFs & Trusts (as advised by Reserve Bank of India (RBI) from time to time). Current Accounts can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs / Specified Associates / Societies / Trusts, etc. Term Deposit Accounts can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs/ Specified Associates / Societies / Trusts, etc.) The due diligence process, while opening a deposit account will involve satisfying the KYC and AML norms issued by RBI. Obtaining introduction of the prospective depositor from a person acceptable to the Bank and obtaining recent photograph of the person/s opening / operating the account are part of due diligence process.
- In addition to the due diligence requirements, under KYC norms the Bank is required by law to obtain Permanent Account Number (PAN) or General Index Register (GIR) Number or alternatively declaration in Form No. 60 or 61 as specified under the Income Tax Act / Rules. G) Deposit accounts can be opened by an individual in his own name (status: known as account in single name) or by more than one individual in their own names (status: known as Joint Account). Savings Bank Account can also be opened by a minor jointly with natural guardian or with mother as the guardian (Status: known as Minor's Account).
- The customer has the freedom to close/switch savings / current accounts, if the customer is not happy with the account, within 14 days from the date of account opening. No charges will be levied for such an action.
- DBS Bank does not offer any special accounts / interest rates for Senior Citizens.
- Services Post Account Opening : The customer receives the Welcome Kit from the bank within 3 working days from the date of receipt of the complete account application and supporting documents required by the Bank. Welcome Kit sent to the customer is enclosed with a welcome letter, cheque book, Terms & Conditions. The customer has the freedom to close/switch savings / current accounts, if the customer is not happy with the account, within 14 days from the date of account opening. No charges will be levied for such an action.
- Operation of Joint Account - The Joint Account opened by more than one individual can be operated by single individual or by more than one individual jointly. The mandate for operating the account can be modified with the consent of all account holders.
- The joint account holders can give any of the following mandates for the disposal of balance in the above accounts:
- Either or Survivor : If the account is held by two individuals say, A & B, the final balance along with interest, if applicable, will be paid to survivor on death of anyone of the account holders.
- Anyone or Survivor/s : If the account is held by more than two individuals say, A, B and C, the final balance along with interest, if applicable, will be paid to the survivor on death of any two account holders.
- Joint : If the account is held by two individuals say, A & B, under a joint mandate both the holders will be required to sign on all instructions issued to the Bank.
The above mandates will be applicable to or become operational only on or after the date of maturity of term deposits. This mandate can be modified by the consent of all the account holders. At the request of the depositor, the Bank will register mandate / power of attorney given by him authorising another person to operate the account on his behalf.
Maturity Instructions for Term Deposits
- The term deposit account holders at the time of placing their deposits can give instructions with regard to closure of deposit account or renewal of deposit for further period on the date of maturity. In absence of such mandate, the deposit will be automatically renewed on the due date for an identical period at the applicable rate of interest ruling on the date of maturity, unless written instructions to the contrary are received from the depositor by the Bank at least one working day prior to maturity.
Nomination
Nomination facility is available on all deposit accounts opened by the individuals. Nomination is also available to a sole proprietary concern account. Nomination can be made in favor of one individual only. Nomination once made can be cancelled or changed by the account holder any time. Nomination can be modified by the consent of all account holders.Thumb impression must be attested by two witnesses. No witnesses are required in case of signatures. Nomination can be modified by the consent of account holder. Nomination can be made in favor of a minor also. Bank recommends that all depositors avail nomination facility. The nominee, in the event of death of the depositor, would receive the balance outstanding in the account as a trustee of legal heirs. The depositor will be informed of the advantages of the nomination facility while opening a deposit account.
Account Statement
A statement of account will be provided by the Bank to Savings Bank as well as Current Deposit Account Holders periodically as per terms and conditions of opening of the account.
Transfer of Accounts
The deposit accounts may be transferred to any other branch of the Bank at the request of the depositor.
Interest Payments
- Interest shall be paid on savings account at the rate specified by Reserve Bank of India directive from time to time. However, term deposit interest rates are decided by the Bank within the general guidelines issued by the Reserve Bank of India from time to time.
- In terms of Reserve Bank of India directives, interest shall be calculated at quarterly intervals on term deposits and paid at the rate decided by the Bank depending upon the period of deposits. In case of monthly deposit scheme, the interest shall be calculated for the quarter and paid monthly at discounted value. The interest on term deposits is calculated by the Bank in accordance with the formulae and conventions advised by Indian Banks' Association.
- The rate of interest on deposits will be prominently displayed in the branch premises. Changes, if any, with regard to the deposit schemes and other related services shall also be communicated upfront and shall be prominently displayed.
- The Bank has statutory obligation to deduct tax at source, if the total interest paid / payable on all term deposits held by a person exceeds the amount specified under the Income Tax Act. The Bank will issue a Tax Deduction Certificate (TDS Certificate) for the amount of tax deducted. The depositor, if entitled to exemption from TDS can submit declaration in the prescribed format at the beginning of every financial year.
Clearing Cut Off: The clearing cut off will be as follows:
- High Value Clearing - 11:30 am Monday - Friday (high value clearing is not available on Saturdays)
- MICR Clearing - 4:30 pm Monday - Friday 1:00 pm Saturday
Clear credit will be available to the customer as follows :
- High Value - Same Day 5:00 pm
- MICR - Second working day from date of deposit
Direct Credit Facility - Will be effected within 15 mins on receipt of instructions
Standing Instructions - Will be implemented on the day of receipt of instructions
Stop payment - Within 15 minutes of receipt of instructions
MINORS' ACCOUNTS
- The minor can open Savings Bank Account with a natural guardian and the same can be operated by the natural guardian.
- On attaining majority, the erstwhile minor should confirm the balance in his/her account and if the account is operated by the natural guardian / guardian, fresh specimen signature of erstwhile minor duly verified by the natural guardian would be obtained and kept on record for all operational purposes.
ADDITION OR DELETION OF THE NAME/S OF JOINT ACCOUNT HOLDERS
The bank may at the request of all the joint account holders allow addition or deletion of name/s of joint account holder/s if the circumstances so warrant or allow an individual depositor to add the name of another person as a joint account holder.
Changing of Account
If you are not happy about your choice of current or savings account (except for terms deposit account) within 14 days of making your first payment into the account, we will help you switch to another of our accounts or give your money back with any interest in may have earned. We will ignore any notice period and any extra charges.
If you decide to close your current/ savings account we will close your account within five working days of receiving your instructions.
If you want to transfer your account to another branch of our bank we will do so. Your account at the new branch will be operationalised within two weeks of receiving your request, subject to your complying with the required KYC formalities at the new branch. We will intimate you as soon as the account is operationalised. The new branch will be provided with information on your standing instructions/ direct debits if any.
We will cancel any bank charges you would have to pay as a result of any mistake or unnecessary delay by us when you transfer your account to or from us.
Account Closures
Under normal circumstances, we will not close your account without giving you at least 30 days notice. Examples of circumstances, which are not normal include, improper conduct of account etc. In all such cases, you will be required to make alternate arrangements for cheques already issued by you and desist from issuing any fresh cheques on such accounts.
Collection of KYC documents from existing customers
The Reserve Bank of India has mandated Banks under Prevention of Money Laundering Act (PMLA) 2002 to periodically obtain identification and address proof documents along with latest photograph/s for existing accounts. To ensure DBS Bank complies with the Reserve Bank of India mandate, customers are requested to provide us the documents listed and the KYC declaration given in the below link based on the category of the customer’s account.
KYC self declaration
KYC documentation
We will be sending customers reminder letters for the same. The self attested documents and KYC self-declaration along with recent photograph/s can be sent to us within 60 days from the date of this letter to your nearest DBS branch.
Please call our Customer Care on 1800-209-4555 (Toll Free from India) or 91-44-6685 4555 (from Overseas) for any clarification.
Process for activating unclaimed accounts
The Reserve Bank of India has mandated Banks via circular number RBI/2011-12/389 to display names of customers who have not operated their accounts for more than 10 years in an attempt to make information on unclaimed accounts more readily available. Account to be classified as “Unclaimed” after 10 Years from the last day of customer induced transactions. Please provide account activation letter and Self-declaration format along with applicable KYC documents as per prevailing KYC guidelines. Customer to be physically present in any of the DBS branches for account activation.
CUSTOMER INFORMATION
The customer information collected from the customers shall not be used for cross selling of services or products by third parties without the permission of the customer.
SECRECY OF CUSTOMER ACCOUNTS
The Bank shall not disclose details / particulars of customer accounts to a third person or party without the expressed or implied consent from the customer. However, there are some exceptions, viz. disclosure of information under compulsion of law or regulations, where there is a duty to public to disclose and where the interests of the Bank require disclosure.
PREMATURE WITHDRAWAL OF TERM DEPOSIT
The Bank on request from the depositor, at its discretion may allow withdrawal of term deposit before completion of the period of the deposit agreed upon at the time of placing the deposit. The Bank shall declare their penal interest rates policy for premature withdrawal of term deposit. The Bank shall make depositors aware of the applicable rate along with the deposit rate. Penal rate of interest shall vary from time to time, however currently we do not charge any penal interest for premature withdrawal of deposits for less then Rs 15 lacs.
PREMATURE RENEWAL OF TERM DEPOSIT
Incase the depositor desires to renew the deposit by seeking premature closure of an existing term deposit account, the bank will permit the renewal at the applicable rate on the date of renewal, provided the deposit is renewed for a period longer than the balance period of the original deposit. While prematurely closing a deposit for the purpose of renewal, interest on the deposit for the period it has remained with the bank will be paid at the rate applicable to the period for which the deposit remained with the bank and not at the contracted rate.
RENEWAL OF OVERDUE TERM DEPOSITS
The deposit will be automatically renewed for the same tenor in case there are no instructions from the customer.
ADVANCES AGAINST DEPOSITS
The Bank may consider request of the depositor/s for loan / overdraft facility against term deposits duly discharged by the depositor/s on execution of necessary security documents.
SETTLEMENT OF DUES IN DECEASED DEPOSIT ACCOUNT
Part 1 - Introduction
Historically, delays have been witnessed in the Indian Banking system in settlement of claims to the nominee / legal heirs of the deceased depositors. Claims by legal heirs / nominee can be in respect of deposits, safe custody articles or contents of lockers.
With a view to removing the hardships faced by common people, the Committee on Procedures and Performance Audit on Public Services (CPPAPS) constituted by the Reserve Bank had suggested that the Reserve Bank of India issue comprehensive guidelines in the matter and Indian Banks Association (IBA) may be asked to draft and circulate a comprehensive Model Operational Procedure (MOP), which could be used by banks for settlement of claims of deceased depositors. Accordingly, IBA had formed a Working Group to review the existing procedures being followed by banks for settlement of claims by legal heirs of deceased constituents and to draft a model operational procedure for settlement of claims of deceased depositors.
The legal position is quite clear in the matter of settlement of claims on the death of an individual. In the absence of nomination or clear mandate in respect of a joint account, or a will left behind by the deceased depositor, banks are required to pay the stock (balance outstanding) at the time of death of the person to all the legal heirs. Considering the risk involved, banks traditionally used to look for legal representation (in the form of a succession certificate, letter of administration or probate) for settlement of claims. The system of obtaining operational mandates in joint accounts emerged as a banking practice to overcome difficulties in settlement of claims in deceased accounts. Subsequently, the statutes were amended in 1985 to provide for nomination facility in bank deposits, safe deposit lockers and safe custody articles. However, since nomination facility is optional at the discretion of the depositor, problems and difficulties in settlement of claims in the event of death of an individual persist.
Reserve Bank of India vide circular No. DBOD.No.Leg.BC.95 /09.07.005/2004-05 dated 9th June, 2005 have issued detailed guidelines for evolving simplified procedure for settlement of claims in respect of deceased depositors.
Model operational procedure have since been issued by IBA (and incorporate the guidelines contained in the RBI circular) and approved by the Reserve Bank of India. Besides, this model operational procedure will be applicable to settlement of claims falling within the threshold limit for such cases having no nominee or survivorship clause. A threshold amount of INR 500,000 - (Rupees five Hundred Thousand Only) has been approved for settlement of claims in such cases
Settlement of claims in such cases within the threshold limit will be settled against indemnity to be furnished by legal heir(s) of the deceased depositor as may be applicable to specific claims
All claims beyond the said threshold of INR 500,000.00 (Rupees Five Hundred Thousand Only ) would be settled against submission of legal representations by the legal heirs as under:
| Type of case. |
Document required. |
| 1) Where there is a Will |
Probate (this is a certified copy of the Will issued by the Court) |
| 2) Where there is no Will |
Succession Certificate or Letters of Administration (this document issued by the Court names the Successor or the Administrator of the estate of the deceased. It is only to this person we can pay the claim) |
| 3) In any other case |
Order of a Court or Administrator General (The order of the Court may be for payment to an applicant or allowing withdrawal from an account / deposit of the deceased with the bank. It could be a garnishee/attachment order or a stay order. Whereas the order or Certificate of the Administrator General would identify the legal heir who can receive payment. Such Orders are normally restricted to a certain threshold as decided by each State Govt). |
In all the above cases there is no need to insist on an indemnity, as these documents would suffice in taking a decision to pay. However, no sooner you get any of these documents as per the case in question, you need to send a certified copy of the same to the legal dept with the gist of the case. Legal dept shall then guide the branch in making payment.
To reiterate, all claims above INR 500,000/00 shall be settled by obtaining documents as shown above in the box. Any case falling outside this purview or when in doubt, Legal dept should be consulted immediately.
Part II - Guidance to customers on advantages of Nomination facility / survivorship mandate
Nomination facility
- Nomination Facility - an ideal tool to mitigate hardships of common persons in settlement of claims in the event of death of the account holder.
- Nomination facility simplifies the procedure for settlement of claims of deceased depositors as banks get a valid discharge by making payment of the balance outstanding in a depositor's account at the time of his death or delivering contents of locker or articles kept in safe custody to the nominee.
- Nomination is optional for bank customers. It is therefore necessary that nomination facility is popularised and customers are made aware of its advantages while opening a deposit account.
- Relationship Managers / Customer Service Officers should inform account holders about the availability of nomination facility, on a voluntary basis. Nomination facility, if availed, would ensure smooth settlement of claim to the nominee.
- It should also be made clear to the depositor(s) that nomination is introduced solely for the purpose of simplifying the procedure for settlement of claims of deceased depositors and nomination facility does not take away the rights of legal heirs on the estate of the deceased. The nominee would be receiving the stock from the bank as a trustee of the legal heirs.
Survivorship
- A joint account opened as "Either or Survivor" or "Anyone or Survivors" or "Former or Survivor" or "Latter or Survivor" will permit the surviving account holder(s) to have unimpeded access to the credit balance in the account for withdrawal if one of the co-account holders dies.
- If the mandate of survivorship is given / provided, the survivor(s) can give a valid discharge to the bank in the case of "Either or Survivor" / "Anyone or Survivors" and "Former or Survivor" / "Latter or Survivor" joint accounts.
- In short payment to survivor(s) can be made in the normal course subject to the only rider that there is no order from a competent court restraining the bank from making such payment.
Part Ill - Settlement of claims in various types of accounts / facilities
1. "Single" Account with or without nomination
Savings Account/Current Account
With Nomination:
The balance outstanding at the time of death of the depositor will be paid to the nominee on verification of his /her identity and proof of death of depositor.
Without Nomination:
The balance outstanding will be paid to the legal heirs (or any one of them as mandated by all the legal heirs) on verification of the authority of the legal heirs and proof of death of depositor (this would be upto INR 5 lacs and on indemnity).
Ascertaining Authority of the Legal Heirs:
The Authority of the Legal Heirs has to be verified as said in this document very often. It is to be ensured that, all rightful legal heirs are identified and taken into account while processing the claim.
It is therefore advisable to make as many local enquiries as possible to ascertain all the legal heirs. It is not sufficient to accept those, who have approached the bank with a claim. In case, the deceased customer's residence or the legal heirs are not living in the vicinity of the Branch then, Bank's staff or Vendors be used for such verification.
In addition to the above and as may be required in each case, legal heirs be asked to produce documents such as a Passport or School Leaving certificate, which would reveal the fathers name. A Ration Card would reveal the names and the number of family members. A Marriage Certificate would give the name of the spouse, while a Family Photograph would help identify the number of family members and resultant legal heirs.
It is to be noted that, where there is dispute amongst the legal heirs for the claim and a reasonable doubt about the genuineness of the claimants being the only legal heirs, then, legal representation like a Succession Certificate or a Probate, as applicable should be insisted upon. Legal Department should be consulted when in doubt in such cases.
Term Deposit Account
With Nomination:
The balance outstanding will be paid to the nominee on verification of his / her identity and proof of death of depositor on maturity of deposit.
Without Nomination:
The balance outstanding will be paid to the legal heirs (or any one of them as mandated by all the legal heirs) on verification of the authority of the legal heirs and proof of death of depositor on maturity of deposit (this would be upto INR 5 lacs and on indemnity).
Premature termination of Term Deposit Account with Nomination:
The nominee will have right to seek premature termination of term deposit account as per terms of contract on verification of his identity and proof of death of depositor.
Without Nomination:
Premature termination will be permitted on joint request by all legal heirs (or any of them as mandated by all the legal heirs) as per the terms of the contract on verification of the authority of the legal heirs and proof of death of depositor. (this would be upto INR 5 lacs and on indemnity).
Care: No penalty is to be levied on such withdrawals in line with RBI Circular No DBOD.No.Leg. BC.95 /09.07.005/2004-05 dated 09 June 2005.
2. "Joint" Account with or without nomination and without survivorship mandate (operated jointly)
Savings Account / Current Account
With Nomination:
a) In the event of death of one of the joint account holders, the balance outstanding will be paid jointly to survivor(s) and the legal heirs of the deceased joint account holder(s) (or any one of them as mandated by all the legal heirs), on verification of the authority of the legal heirs and proof of the death of the depositor.
b) In the event of death of both / all joint account holders, the balance outstanding at the time of death of the depositor(s) will be paid to the nominee on verification of his identity and proof of death of depositors.
Without Nomination:
(a) In the event of death of any of the joint account holder(s), the amount outstanding will be paid jointly to the legal heirs of the deceased account holder (or any one of them as mandated by all the legal heirs) and surviving account holders against their joint claim on verification of the authority of legal heirs and proof of death of depositor (this would be upto INR 5 lacs and on indemnity).
(b) In the event of death of both/all joint account holders, the balance outstanding will be paid to the legal heir(s) of all the depositors (or any one of them as mandated by all the legal heirs) on verification of authority of the legal heirs and proof of death of the depositors (this would be upto INR 5 lacs and on indemnity).
Term Deposit Account
With Nomination:
(a) In the event of death of one of the joint account holders, the balance outstanding will be paid jointly to survivor(s) and the legal heirs of the deceased joint account holder(s) (or any one of them as mandated by all the legal heirs) on verification of authority of the legal heirs and proof of death of the depositor on maturity of the deposit.
(b) In the event of death of both / all the joint account holders, the balance outstanding at the time of death of the depositor(s) will be paid to the nominee on verification of his identity and the proof of death of depositors on maturity of the deposit.
Without Nomination:
(a) In the event of death of one of the joint account holders, the balance outstanding will be paid jointly to the survivor(s) and the legal heir(s) of the deceased (or any one of them as mandated by all the legal heirs) on verification of authority of the legal heirs and proof of death of the depositor on maturity of the deposit (this would be upto INR 5 lacs and on indemnity).
(b) In the event of death of both / all the joint account holders, the balance outstanding will be paid to the legal heirs, or any one of them as mandated by all legal heirs) on verification of authority of the legal heirs and proof of death of depositors on the maturity of the deposit (this would be upto INR 5 lacs and on indemnity).
Premature Termination of Term Deposit Account
With Nomination:
(a) In the event of death of one of the joint account holders, premature termination will be permitted against joint request of the survivor(s) and the legal heir(s) (or any one of them as mandated by all legal heirs) as per the terms of contract on verification of authority of the legal heirs and proof of death of depositor.
(b) In the event of death of both / all joint account holder, the nominee will have right to seek premature termination of term deposit account as per the terms of contract on verification of his identity and proof of the death of the depositors.
Care: No penalty is to be levied on such withdrawals in line with RBI Circular No DBOD.No.Leg. BC.95 /09.07.005/2004-05 dated 09 June 2005.
Without Nomination
(a) In the event of death of one of the joint account holders, premature termination will be permitted against joint request of the survivor(s) and the legal heir(s) of the deceased (or any one of them as mandated by all legal heirs) as per the terms of contract on verification of authority of legal heirs and proof of death of depositor (this would be upto INR 5 lacs and on indemnity).
(b) In the event of death of both / all the joint accountholders, premature termination will be permitted against joint request by all legaI heirs of the deceased depositors (or any one of them as mandated by all legal heirs) as per the terms of contract on verification of authority of legal heirs and proof of death of depositors. (this would be upto INR 5 lacs and on indemnity).
Care: No penalty is to be levied on such withdrawals in line with RBI Circular No DBOD.No.Leg. BC.95 /09.07.005/2004-05 dated 09 June 2005.
3. "Joint" account with mandate "Either or Survivor" / "Anyone or Survivors"- with or without nomination.
Savings Account / Current Account
With Nomination:
(a) In the event of death of one of the joint account holders the balance outstanding will be paid jointly to survivor(s) on verification of proof of death of the depositor.
(b) In the event of death of both / all joint account holders the balance outstanding will be paid to the nominee on verification of his identity and proof of death of depositors.
Without Nomination:
(a) In the event of death of one of the joint account holders the balance outstanding will be paid jointly to survivor(s) on verification of proof of death of the depositor (this would be upto INR 5 lacs and on indemnity).
(b) In the event of death of both / all the account holders, the balance outstanding will be paid jointly to the legal heirs (or anyone of them as mandated by all the legal heirs) on verification of authority of legal heirs and proof of death of the depositors (this would be upto INR 5 lacs and on indemnity).
Term Deposit Account
With Nomination:
(a) In the event of death of one of the joint account holders the balance outstanding will be paid jointly to survivor(s) on verification of proof of death of the depositor on maturity of deposit.
(b) In the event of death of both / all joint account holders, the balance outstanding will be paid to the nominee on verification of his identity and proof of death of depositors on maturity of deposit.
Without Nomination:
(a) In the event of death of one of the joint account holders, the payment will be made to the survivor(s) on verification of proof of death of the depositor on maturity of deposit. (this would be upto INR 5 lacs and on indemnity).
(b) In the event of death of both / all the joint account holders, the balance outstanding will be paid jointly to the legal heir(s) (or any one of them as mandated by all the legal heirs) on verification of authority of legal heirs and proof of death of depositors, on maturity of deposit. (this would be upto INR 5 lacs and on indemnity).
Premature termination of Term Deposit Account
With Nomination:
(a) In the event of death of one of the joint account holders, premature termination will be permitted to survivor(s) as per the terms of contract on verification of proof of death of depositor.v
(b) In the event of death of death of both / all joint account holders, the nominee will have right to seek premature termination of term deposit account as per the terms of the contract on verification of his / her identity and proof of death of depositors.
Without Nomination
(a) In the event of death of one of the joint account holders, premature termination will be permitted to survivor(s) as per the terms of contract on verification of proof of death of depositor. (this would be upto INR 5 lacs and on indemnity).
(b) In the event of death of both / all the account holders, premature termination will be permitted against joint request by all legal heirs of the deceased (or any one of them as mandated by all the legal heirs) as per the terms of contract on verification of authority of legal heirs and proof of death of depositors. (this would be upto INR 5 lacs and on indemnity).
Care: No penalty is to be levied on such withdrawals in line with RBI Circular No DBOD.No.Leg. BC.95 /09.07.005/2004-05 dated 09 June 2005.
4. "Joint" Account with mandate "Former or Survivor" / "Latter or Survivor" - with or without nomination.
Savings Account / Current Account
With Nomination:
(a) In the event of death of former/latter, the balance outstanding will be paid to survivor on verification of proof of death of depositor.
(b) In the event of death of both the depositors the balance outstanding will be paid to the nominee on verification of his identity and proof of death of the depositors.
Without Nomination:
(a) In the event of death of former / latter as the case may be the balance outstanding will be paid to the survivor on verification of proof of death of the depositor. (this would be upto INR 5 lacs and on indemnity).
(b) In the event of death of both the joint account holders, the balance outstanding will be paid to legal heirs (or any one of them as mandated by all the legal heirs) on verification of authority of legal heirs and proof of death of depositors. (this would be upto INR 5 lacs and on indemnity).
Term Deposit Account
With Nomination:
(a) In the event of death of former/latter, the balance outstanding will be paid to the survivor on verification of proof of death of the depositor on maturity of deposit.
(b) In the event of death of both / all account holders the balance outstanding will be paid to the nominee on verification of his identity and proof of death of depositors on maturity of deposit.
Without Nomination:
(a) In the event of death of former / latter depositor as the case may be, the balance outstanding will be paid to the survivor on verification of proof of death of the depositor on maturity of deposit. (this would be upto INR 5 lacs and on indemnity).
(b) In the event of death of both the joint account holders, the balance outstanding will be paid to legal heirs (or any one of them as mandated by all the legal heirs) on verification of authority of legal heirs and proof of death of depositors. (this would be upto INR 5 lacs and on indemnity).
Premature termination of Term Deposit Account
With Nomination:
(a) In the event of death of former/latter, the survivor will have the right to seek premature termination of term deposit account as per the terms of contract on verification of proof of death of the depositor.
(b) In the event of death of both the depositors the nominee will have right to seek premature termination of term deposit account as per the terms of contract on verification of his identity and proof of death of depositors.
Without Nomination:
(a) In the event of death of former / latter depositor as the case may be premature termination of the deposit will be allowed against request from surviving depositor as per the terms of the contract on verification of the proof of the death of the depositor. (this would be upto INR 5 lacs and on indemnity).
(b) In the event of death of both the joint account holders, the legal heirs (or any one of them as mandated by all the legal heirs) will have the right to seek premature termination of term deposit account as per the terms of contract on verification of authority of legal heirs and proof of death of depositors. (this would be upto INR 5 lacs and on indemnity).
5. Some clarifications regarding Provisions in Nomination Rules
The Banking Companies (Nomination) Rules, 1985 have been framed in terms of Sections 45 ZA to 45 ZF of the Banking Regulation Act, 1949.
1. Deposit Accounts
(i) Nomination facility is intended only for individuals including a sole proprietary concern.
(ii) There cannot be more than one nominee in respect of single / joint deposit account.
(iii) Banks may allow variation/cancellation of a subsisting nomination by all the surviving depositor(s) acting together. This is also applicable to deposits having operating instructions "Either or Survivor".
(iv) it may be noted that in the case of a joint deposit account the nominee's right arises only after the death of all the depositors.
Part IV - Simplification of the process for settlement of claims in deceased depositors' accounts
I. Documentation
Documents which are required to be submitted along with the claim form:
1. Proof of death of depositor(s) or hirer(s).
2. Proof of identification of nominee(s) wherever applicable such as Ration Card, Election ID Card, PAN Card or Passport or any other satisfactory proof of identification acceptable to the bank or proof of authority of legal heir(s) wherever applicable.
(a) The Bank should exercise due care and caution in ascertaining the identity of the survivor(s)/nominee and the fact of death of the account holder, through appropriate documentary evidence;
(b) It should be made clear to the survivor(s)/nominee that he / they would be receiving the payment from the member bank as a trustee of the legal heirs of the deceased depositor, i.e., such payment to him / them shall not affect the right or claim which any person may have against the survivor(s)/nominee to whom the payment is made.
II. Time Norms for settlement of claims
The Bank will settle the claims in respect of deceased depositors and release payments to survivor(s) / nominee in case of accounts with survivor / nominee within a period not exceeding 15 days from the date of receipt of the claim subject to the production of proof of death of the depositor and suitable identification of the claimant(s) to the bank's satisfaction. In the case of accounts without survivor / nominee clause the claim will be settled within 1 month from the date on which the requisite documents have been submitted.
III. Competent authority for settlement of claims
Keeping in view the objective of settling the claims within a period not exceeding 15 days from the receipt of the claim and the risk management policy, a limit of INR 500,000 is approved for delegation to each branch.
IV. Premature termination of Term Deposit Accounts and payment of interest / other issues relating to Term Deposit Accounts
(a) In the case of term deposits, a clause will be incorporated in the account opening form itself to the effect that in the event of the death of the depositor(s), premature termination of term deposits would be allowed. The conditions subject to which such premature withdrawal would be permitted may also be specified in the account opening form. Such premature withdrawal would not attract any penal charge.
(b) Payment of interest in case of term deposit accounts of deceased depositor(s)
In case of a term deposit standing in the name/s of -
(1) a deceased individual depositor, or
(2) two or more joint depositors, where one of the depositors has died, interest shall be paid in the manner indicated below
(i) on the maturity of the deposit at the contracted rate.
(ii) In case of premature withdrawal i.e., in the event of the payment of deposit being claimed before the maturity date the bank will pay interest at applicable rate with reference to the period for which the deposit has remained with the bank without charging penalty.
(c) Splitting of Term Deposit
If, on request from the claimant(s) the bank agrees to split the amount of term deposit and issues two or more receipts individually in the names of the claimant(s), it shall not be construed as premature withdrawal of the term deposit, provided the period and aggregate amount of the deposit do not undergo any change.
V. Treatment of flows in the name of the deceased depositor
In order to avoid hardship to the survivor(s) / nominee of a deposit account, the bank may obtain an appropriate agreement / authorisation from the survivor(s) / nominee with regard to the treatment of pipeline flows in the name of the deceased account holder. In this regard, the banks may consider adopting either of the following two approaches:
The bank could be authorised by the survivor(s) / nominee of a deceased account holder to open an account styled as ‘Estate of Mr/Ms _______________ the Deceased' where all the pipeline flows in the name of the deceased account holder could be allowed to be credited, provided no withdrawals are made.
OR
The bank could be authorised by the survivor(s) / nominee to return the pipeline flows to the remitter with the remark "Account holder deceased and to intimate the survivor(s) / nominee accordingly. The survivor(s) / nominee / legal heir(s) could then approach the remitter to effect payment through a negotiable instrument or through ECS transfer in the name of the appropriate beneficiary.
| Claims |
Document obtained: Yes/No |
| 1. Accounts with Nomination clause: |
|
| (i) Application for Deceased Claim from Nominee/ Guardian of nominee (Annexure-1) |
|
| (ii) Copy of Death Certificate (Verified with original) |
|
| (iii) Identify proof (as defined in Part-IV) |
|
| 2. Joint Accounts with Either or Survivor clause: |
|
| (i) Application for Deceased Claim from Survivor(s) (Annexure-1) |
|
| (ii) Copy of Death Certificate (Verified with original) |
|
| 3. For cases other than Nomination/Joint
Accounts with survivor clause:
(For amounts up to threshold limit) |
|
| (i) Application for Deceased Claim (Annexure -2) |
|
| (ii) Copy of Death Certificate |
|
| (iii) Letter of Indemnity signed by claimant(s) (Annexure -3) |
|
| 4. RECEIPT (Annexure -4) |
|
Insurance Cover for Deposits
All bank deposits are covered under the insurance scheme offered by Deposit Insurance and Credit Guarantee Corporation of India (DICGC) subject to certain limits and conditions. The DICGC insures principal and interest upto a maximum amount of Rs. One lakh. For example, if an individual had an account with a principal amount of Rs. 95,000 plus accrued interest of Rs. 4,000, the total amount insured by the DICGC would be Rs. 99,000. If, however, the principal amount in that account was Rs. One lakh, the accrued interest would not be insured, not because it was interest but because that was the amount over the insurance limit.
Stop Payment Facility
The Bank will accept stop payment instruction from the depositors in respect of cheques issued by them. Charges, as specified, will be recovered.
Dormant Accounts
Accounts which are not operated for a period of 24 months will be transferred to a separate dormant / inoperative account status in the interest of the depositor as well as the Bank. The depositor will be informed of charges, if any, which the Bank will levy on dormant / inoperative accounts. The depositor can request the Bank by way of a written application to activate the account for operating it.
Foreign Exchange Services
The exchange rates are published by the bank on a daily basis. The customer will be informed about the exchange rate applicable on the date of receipt of funds. The customers account will be credited with the funds on the same day if the funds are received before 2:00 pm (Monday - Friday) and the next working day if the funds are received after 2:00 pm
Validity of cheques
With effect from 1st April 2012 validity of Cheque/Pay Order /Demand Draft will be 3 (three) months as per RBI circular no. DBOD.AML BC.No.47/14.01.001/2011-12 dated 4th November 2011. Banks shall not make payment of Cheques/Pay Order/Demand Draft if they are presented beyond the period of three months from the date of such instrument
Information
You can get information on common fees and charges through any one of the following
- Looking at our notices in our branches
- Phoning our Branches
- Checking our website
- Asking our designated staff
- Referring to the service guide
Interest rates will be updated on the website and the notices in our branches from time to time. You can also get the latest deposit rates by calling our branches, looking on our websites and asking our designated staff.
RBI guidelines on Alterations / Corrections on cheques w.e.f. 1 December 2010
As per RBI guidelines on Alterations / Corrections on cheques, effective 1 December 2010, no changes / corrections would be allowed on cheque forms (other than for date validation purposes, if required). For any changes in the cheque, a fresh cheque form needs to be issued. This will be applicable only for cheques cleared under the image based cheque truncation system (CTS), which is currently operational in Delhi and will be implemented across India in future. W. e. f 15th September 2011 CTS has been extended in Chennai and w e f 1st April 2012 it will be implemented in Bangalore. This is not applicable to cheques cleared under other clearing arrangements such as MICR clearing, non-MICR clearing, over the counter collection (for cash payment) or direct collection of cheques outside the Clearing House arrangement.
Redressal of complaints and grievances
At DBS, we want to make sure that you get only the very best of service from us, service which you, our valued customer, deserve.
If, at any stage, you feel that our service levels are not up to your expectations, here is what you can do:
- Please write a letter to the Manager of the Branch / Division explaining the details of the issues concerned. You will receive a response within a period of 14 working days of the Branch Manager receiving the letter.
- If you are still not satisfied with the resolution you receive, please write to :
Mr. Rahul Johri
Nodal Officer
DBS Bank Ltd,
221, Dr D.N.Road
Fort House, Fort
Mumbai 400 001.
Direct- 022 6638 8845
Email- rahuljohri@dbs.com
- If you do not hear from the Branch Manager or Nodal Officer within 14 working days, or if you are not satisfied with the response, please write to :
Mr. Vijit Yadav
Head - Technology and Operations
DBS Bank Ltd,
221, Dr D.N.Road
Fort House, Fort
Mumbai 400 001.
Direct- 022 6638 8846
Email- vijityadav@dbs.com
You will receive a response within a period of 14 working days of Mr.Yadav receiving the letter.
- If you do not hear from Mr. Vijit Yadav within 14 working days, or if you are not satisfied with the response, please write to :
Mr. Sanjiv Bhasin
Chief Executive Officer & General Manager, India,
DBS Bank Ltd,
221 Dr D.N. Road,
Fort House, Fort
Mumbai 400 001
Direct - 022 6638 8801
Email - sanjivbhasin@dbs.com
You will receive a response within a period of 14 working days of Mr. Bhasin receiving the letter.
- If you do not hear from Mr. Bhasin within 14 working days, or if you are not satisfied with the response, please write to the Banking Ombudsman, a statutory body appointed by the Reserve Bank of India to look into the provision of satisfactory service by banks. Brief details of the scheme are as follows:
The Reserve Bank of India has appointed an Ombudsman, who can be approached for redressing customer grievances if they have not already been redressed by DBS. The salient features of the Scheme are as follows, and the following conditions will apply before the Ombudsman can be approached:
- The complainant, before making a complaint to the Ombudsman, had made a written representation to DBS, and the Bank had either rejected the complaint, or the complainant had not received a reply within a period of one month after the complaint was received by the Bank, or the complainant was not satisfied with the reply given by the Bank.
- The complaint is made not later than one year after the complainant has received DBS' reply to his/her representation or, where no reply is received, not later than one year and one month after the date of the representation to DBS
- The complaint has not been settled by the Ombudsman in any previous proceedings.
- The complaint is not the subject matter of proceedings before any court, tribunal, arbitrator or any other forum.
- The complaint is not frivolous or vexatious in nature.
- The complaint is made before the expiry of the period of limitation prescribed under the Indian Limitation Act, 1963 for such claims.
A copy of the Banking Ombudsman Scheme along with the addresses of its centers in the various cities can be procured from the Branch Managers. If you are not satisfied with our grievance addressal, you may contact the Banking Ombudsman.
To know more about the Banking Ombudsman Scheme 2006, click here to view the document (PDF format).