Type of Account : Current Account to meet the requirements of Realtors who are looking for a product to meet the provisions of RERA Act 2016.
Purpose : Realtor’s Current Account for the Purpose of RERA Act 2016. (Specifically designed for depositing the minimum 70% of Realtor’s Collections from Investors and Buyers).
Style of Account : Account 1: Realtor’s Current Account for receipt of 100% Collections [Auto transfer to Account 2 and Account 3 in the ratio of 70:30 at end of day (eod)] Account 2: Realtor’s Current Account for depositing minimum 70 % of Collections ( funds to be transferred from Account 1 ). This account will be registered with RERA Authority Account 3: Realtor’s Current Account for Day to Day operations for receiving 30%of Collections(funds to be transferred from Account 1). However, Realtors may decide for transfer of 30% of Collections to their other Operating CC/OD account instead of Current Account 3.
Special Cases:
Realtor Project financed by our Bank : 30% of the Collections from buyers as well as funds after withdrawal from Account 2 (70% of Collections) will be credited to the Escrow Account . The funds from Escrow Account will be transferred to Realtor’s Operating Account i.e. Current Account/CC/Overdraft, after adjusting Bank’s dues as per Terms and Conditions of sanction.
Request for only Account 2 : A single current Account (i.e. Account 2) for the minimum 70% of collections from Buyers can be opened in case specific requests are received from Realtors. Agreement will be amended accordingly.
Separate Current Accounts for Taxes /other fees (If permitted by respective State RERA Authorities): Realtors may request the Bank for opening of a Separate Current Account for deposit of Taxes / Other Fees related to purchase of flats from buyers etc.
Eligibility : Realtors of Residential and Commercial Real Estates registered/ to be registered with Authority of respective State/Union Territory under RERA Act 2016.
Monthly Average Balance (MAB) :
Type of A/c
MAB (in Rs)
Remarks
Account 1
NIL
The balance will be zeroised at end of day.
Account 2
10,000/-
The a/c will have Sweep and Reverse Sweep facility. Sweep parameters defined separately. Sweep Balance will not be factored for calculating MAB.
Account 3
10,000/-
NA
Sweep facility to Term Deposits: Parameters Sweep Facility to Term Deposits allowed only if permitted by concerned RERA Authority for the State .
Threshold balance: Rs 2,00,000/-
MOD created for minimum amount of Rs 1,00,000/- (and in multiples of Rs 10,000/-) at any one instance.
Resultant Balance : Rs. 1,00,000/-
Sweep facility to MODs will be allowed once in a week on Monday.
Prepayment penalty will be applicable as in case of normal Term Deposits.
System driven checks for MODs created: a) By default, any proceeds of the MOD will be credited back to Account 2 only. b) No lien can be marked on the MODs created out of Account 2 (Lien against loan will not be allowed, however if the same is requested by RERA/Regulators/Legal or Income Tax Authorities, in case of fraud etc. would be allowed.) c) No loan can be granted against such fixed deposits nor any charge created.
Fee for managing the A/c : Usual account maintenance charges. No separate fee to manage the Account at present.
Penalty
Penalty for non-maintenance of Monthly Average Balance (MAB):
Type of A/c.
Penalty
Account 1
NIL
Account 2
NIL
Account 3
Rs. 500/- + GST
Particulars
Account 1
Account 2
Cheque book facility
Not allowed
Not allowed
Alternate mode of transaction
Not allowed
Not allowed
Internet Banking
Viewing rights only
Viewing rights only
Alternate channel Linkage
Disabled
Disabled
Non Home Branch Debit
Not allowed
Not allowed
a. Account 1 : Auto transfer of Balance in the account to Account 2 and Account 3 in the ratio of 70:30 respectively at EOD.
b. Account 2 : Withdrawal to be only allowed after receiving the Withdrawal Form cum Undertaking from Promoter along with the Certificate from the Architect, Engineer and Chartered Accountant practising (other than statutory auditor of the promoter). Certificate format prescribed as per RERA notification of the respective State/UT to be obtained.
c. Account 3 : Operation as per Regular Current Account.
Documents Required :
At the time of opening of Account:
i) Completely filled Current Account Opening Form (AOF).
ii) Documents as applicable for opening of a Current Account of the respective Customer Type (viz Partnership, Proprietorship, Companies etc).
iii) Adherence to KYC requirements.
iv) Undertaking from Realtors for not having availed credit facility from any other Bank(s)/ Financial Institution(s).
v) No Objection Certificate from the concerned Bank(s)/Financial Institution(s) in case credit facilities have been availed by Realtors.
vi) A Special Agreement between Bank and the Realtor. The Agreement is a mandatory requirement as part of the documents to be executed for opening a Realtors Current Account.
vii) Undertaking from the Realtor that no current account for the Designated Project has been opened with any other Bank.
At the times of withdrawal from Account 2:
i) Withdrawal Form cum Undertaking from Realtor, certifying the genuineness of the CA’s/Engineer’s/ Architect’s certificates.
ii) Certificate from the Architect, Engineer and Chartered Accountant practising (other than the statutory auditor of the promoter) as per format prescribed by the State RERA Authorities, attested by the Realtor.
Note: All Static information as required under PMLA to be captured. Instructions regarding Beneficial Owner, to be adhered to and no Company to be onboarded, if the Director does not have DIN.
