SAVINGS BANK RULES (ABRIDGED)

Know Your Customer Guidelines

Any person fulfilling account opening requirements may, upon agreeing to comply with the prescribed rules, open a Savings Bank Account, provided she/he furnishes proof of identity and proof of address as required by the Bank. (Rule No. 1)

Nomination & Survivorship Facility

The nomination facility is available on Savings Bank Accounts and the account holders are advised to avail of this facility for smooth settlement of claim by legal heirs in unforeseen circumstances. Nomination can be made in favour of only one nominee. In case they do not wish to make a nomination, the fact should be recorded on the account opening form under their full signature. Joint account with survivorship benefit can be operated by the survivor, in such circumstances. (Rule Nos. 10, 2)

Types Of Accounts, Balance Stipulation & Service Charges

The applicants can open an account either with chequebook facility or without chequebook. The current minimum quarterly average balances prescribed for these account types and the charges prescribed for non maintenance of minimum balance, are available at the Banks website www.statebankofindia.com. The information can also be obtained from Branches. There is no ceiling on maximum balance in Savings Bank account, except for Minors account. (Rule Nos. 11, 12).

Minors Accounts

Minors who can adhere to uniform signature and are not less than ten years old can open accounts in their single name and maintain therein a maximum balance of Rs. 200,000/- (Rs. Two lacs only). Minors may open joint accounts with their guardians. (Rule No. 3)

How To Open An Account?

In ordinary course, applicant(s) should attend the Bank personally for completion of formalities for opening the account. They will duly fill in and sign the prescribed application form. Applicant(s) should submit two copies of his/ her/ their recently taken passport size photographs. Account holders signatures must be legible and well formed. Signatures should not be in capital or block letters.Each account will be given a distinctive account number. While dealing with the Bank, this number should be invariably quoted by the account holder(s). The account holders, in their self-interest, are expected to adhere to uniform signature as per specimen recorded with the Bank while operating the accounts and addressing any correspondence to the Bank. (Rule Nos. 7, 8, 9, 13)

Pass Book

The pass book and cheque book supplied to the account holder should be kept in a safe place. The Bank will not be responsible for any loss or incorrect payment attributable to the account holders neglect in this regard. (Rule Nos. 18, 29). For withdrawing cash by means of a withdrawal form, the pass book must be presented. Withdrawals using cheque forms and Debit card can be effected without pass book. Deposits may be made without production of the pass book. (Rule No. 15) Pass book should be got updated regularly. The pass book will be returned to the accountholder immediately after completion of the transaction duly updated. In case it is not collected within a weeks time, it will be returned to them by Registered A.D. post/ Courier at their cost. (Rule No. 16) The account holders should carefully examine the entries in their pass books and draw the Banks attention to errors or omissions, if any. (Rule No. 17)

Duplicate in lieu of the lost or mutilated pass book may be issued on receipt of a written request from the account holder after necessary enquiries, completion of formalities and recovery of prescribed charges. The current charges prescribed for this are available at the Banks website www.statebankofindia.com. This information can also be obtained from Branches. (Rule No. 20)

Cheque Book

The Bank will issue the first cheque book after completion of all formalities with regard to opening of the account. No charge will be recovered for issue of twenty five cheque leaves in a year (both MICR and non MICR). Thereafter, service charge will be charged to the customers account. The current charges prescribed for this are available at the Banks website www.statebankofindia.com. This information can also be obtained from Branches. The account holders must use only the cheques from the cheque books issued to them by the Bank.The Bank reserves the right to refuse payment of any cheques drawn otherwise. Ordinarily, Bank will not issue more than one cheque book at a time or before exhausting all or nearly all cheque leaves issued previously. (Rule No. 27) Cheques must be written legibly and any alterations or cuttings should be authenticated under full signature which must conform to the specimen recorded with the Bank. (Rule No. 28) Stop payment instructions in respect of cheques issued or lost can be registered with the Bank on payment of a prescribed service charge. The current charges prescribed for this are available at the Banks website www.statebankofindia.com. This information can also be obtained from Branches. (Rule No. 32)


Operations In The Account

General

Savings Bank account is essentially a facility to build up savings and hence must not be used as a Current Account. Bank may close an account should it have any reason to believe that the account holder has used her/his account for a purpose for which it is not allowed. (Rule No. 5)

Deposits

There is no restriction on number of deposits that can be made into the account. No deposit in cash for less than Rs 10/- will be accepted. Cheques, drafts or other instruments drawn only in favour of the account holder will be accepted for credit of the account. Third party instruments endorsed in favour of the account holder will NOT be accepted. No drawings against accepted instruments will be normally permitted until these are realized. In satisfactorily conducted accounts, immediate credit will be afforded for outstation instruments deposited up to Rs 20000/-, which may change from time to time. The normal collection and out of pocket charges will be recovered. The current limit and charges prescribed for this are available at the Banks website www.statebankofindia.com. This information can also be obtained from Branches. Overdue interest will be recovered for instruments subsequently returned unpaid. (Rule Nos. 21, 22, 23)

Withdrawals

The accountholder can withdraw money personally from her/ his ordinary Savings Bank Account by using Banks standard withdrawal form. The pass bookmust accompany the withdrawal form.The withdrawal form can be used only for receiving payments by the accountholder himself/ herself. ATM cum Debit card can also be used in ATMs for cash withdrawal. The accountholder cannot withdraw an amount less than Rs. 50/-. All withdrawals must be in round Rupees only. Third party payments through withdrawal forms are not permitted. A letter of authority as per the prescribed format, along with the pass book should be sent to the Bank through an authorized representative to receive payment in case the account holder is unable to attend personally to withdraw cash from her/his account. (Rule Nos. 24, 25, 26) The minimum drawing permitted per cheque form is limited to Rs. 50/-. There is no ceiling on the maximum amount that can be drawn through a single cheque. (Rule No. 30) The maximum number of debit entries permitted in an account is 30 per half year or as decided by the Bank from time to time, excluding transactions through alternate channels like State Bank ATMs and Internet Banking.Cash withdrawal at ATMs of other banks will be counted as a debit entry in the account for the above purpose and are not to be treated as transactions made through alternate channels.Charges prescribed for exceeding this limit are available at the Banks website www.statebankofindia.com. This information can also be obtained from Branches. (Rule No. 35) Cash withdrawal can be made from the accounts of the sick, old or incapacitated account holders who are unable to attend the Bank and/or also not able to put their signature or thumb impression for withdrawing cash by completing the laid down formalities. (Rule No. 33)

Overdrafts

Overdrafts in Savings Bank accounts may be permitted under exceptional circumstances with prior arrangements only. Cheques drawn in excess of the balance in the account will be returned unpaid. Service charge will be recovered each time a cheque is returned unpaid for want of sufficient funds. Charges prescribed for this are available at the Banks website www.statebankofindia.com. This information can also be obtained from Branches. (Rule No. 31)

Inoperative Accounts

Account holders are advised to operate their accounts regularly. Accounts not operated are classified as Inoperative after the stipulated time period of 24 months since last operation. Inoperative accounts having less than the stipulated minimum balance will be charged a service charge at the end of the first year after the account is identified as inoperative and thereafter every year, if the account remains inoperative. If the balance in the account is equal to or less than the service charge, the account will be closed under advice to the account holder. The current prescribed charges in this regard are available at the Banks website www.statebankofindia.com. This information can also be obtained from Branches. (Rule Nos. 36, 37)

Standing Instructions

The account holder can request the Bank for effecting periodical payment of insurance premium, membership fees etc. by debit to her/ his account on payment of service charges. The current prescribed charges for Standing Instruction are available at the Banks website www.statebankofindia.com. This information can also be obtained from Branches. (Rule No. 40)

Payment of Interest

As per RBI guidelines applicable from time to time. Interest will be calculated on a daily product basis. Interest will be credited to the account at quarterly intervals. Interest will be paid only if works out to Re1/- or more. Thereafter fifty paise and more will be rounded off to the next higher rupee and anything less will be ignored. In case of accounts frozen by the enforcement authorities, Bank shall continue to credit the interest to the account on a regular basis. (Rule Nos. 41, 42)

Transfer & Closure Of Account

Accounts may be transferred between branches of the Bank at the request of the account holder(s). Request for closure of account should state the reason for closure. The pass book, unused cheque leaves and the ATM cum Debit card (after cutting into two pieces across the magnetic strip) must accompany such request. Joint accounts can be closed only at the request of all such joint signatories. Service charge at prescribed rate will be recovered if an account is closed prior to twelve months of its opening. The current charges prescribed for this are available at the Banks website www.statebankofindia.com. This information can also be obtained from Branches. (Rule Nos. 43, 44, 45)

Change in Rules

The Bank reserves the right to alter, delete or add to any of these Rules and service charges for which the customer will be duly notified through Bank's website and/ or branch notice board. (Rule Nos. 39, 46)