A Recurring Deposit(RD) account where the compounding of interest is to be done on quarterly basis shall be accepted for periods in multiples of three months only upto the maximum period of ten years..
Minimum Amount of monthly installment
Recurring Deposits will be in equal monthly instalments. The core monthly instalment should be minimum Rs. 500/ in Metro and urban Branches and Rs.100/- or above in Semi urban/Rural Branches and in its multiples. There is no maximum limit.
Installments of any calendar month should be paid on or before last working day of that calendar month and if it is not so paid
penalty will be charged on the installments in arrears at the following rates
Rs.1.50 for every Rs.100/- p.m. for deposits of 5 years and less
Rs.2.00 for every Rs.100/- p.m. for deposits of over 5 years. Where installments in the account are deposited in advance, penalty payable in respect of delayed installments may be waived by the Bank if the equal number of advance installments are deposited.