Deposits
During the reporting year 2023/2024, we collected savings, fixed, and homesafe recurring deposits. The deposits increased by Rs. 1,40,31,73,668.02.
A Current Account is primarily designed for businessmen, firms, companies, public enterprises, etc., who engage in numerous daily banking transactions. These are cheque-operated accounts not intended for earning interest or for saving purposes but rather for facilitating business transactions, making them non-interest bearing.
In a Current Account, customers have the flexibility to deposit any amount of money multiple times and withdraw as often as needed, provided there are sufficient funds in the account. Typically, maintaining a Current Account requires a higher minimum balance compared to a Savings Account.
In a Recurring Deposit (RD) account, an individual commits to depositing a specific amount into the bank monthly at a predetermined rate of interest. This account has a fixed tenure, upon the completion of which, both the principal amount and the accrued interest are returned to the depositor. An RD encourages disciplined saving by offering interest rates comparable to those of Term Deposits, while also providing the flexibility to access funds if needed. However, since the interest rate on an RD is fixed, it does not offer protection against inflation.
Accounts can be opened by individuals, as well as associations of individuals such as Co-operative Societies, Institutions, and Associations approved by the bank. An account may be opened by a single individual or jointly by two or more individuals. A natural guardian, such as a father or mother, can open an account on behalf of a minor child or ward. The initial deposit required to open a Savings Bank Account with a cheque book is Rs. 500, and without a cheque book, it is Rs. 100. These amounts also represent the minimum balance requirements for the respective accounts.
Bank Fixed Deposits, also known as Term Deposits, involve depositing a certain sum of money in the bank for a specified period at a fixed interest rate. The interest rate on Bank Fixed Deposits varies depending on the term of the deposit, generally increasing with the length of the maturity period.
During the financial year 2023/2024, the bank initiated 12 group deposit schemes with scales of Rs. 50,000, Rs. 1,00,000.00, Rs. 2,00,000.00, and Rs. 3,00,000.00. By the year's end, there were 36 active group deposits. Furthermore, we are planning to introduce new group deposit schemes monthly at both the head office and the branches.