TERM  DEPOSIT SCHEME

Terms and Conditions

Deposits under NABARD’s Term Deposit Scheme shall be accepted by NABARD subject to following terms and conditions:

1. Denomination : Deposits shall be accepted in multiples of Rs.1000 subject to a minimum of Rs.10,000/-. There is no maximum limit on the amount or number of deposits or as stipulated by NABARD from time to time.
   
   
2. Period of Deposit : Deposits shall be accepted for a minimum period of 1 year and a maximum period of 5 years.
   
   
3. Rate of Interest : The rate of interest prevalent at the time of investment may be ascertained from NABARD office (s) / its official website at nabard.org.

           

Category	02 years	03 years
General	10% p.a.(10.38% annualised)	9.50%p.a.(9.83% annualised)
Senior Citizens	10.50% p.a.(10.92% annualised)	10%p.a.(10.38% annualised)

 

4. Eligible Depositors : Deposits shall be accepted from
1. Resident Indian Nationals not being minor who may be either a single individual or not more than 3 individuals jointly.
2. HUF through their Karta
3. Partnership firms
4. Companies, body corporate, societies and trusts registered under applicable laws in India and authorised to invest in deposits under the Scheme.
5. Association of Persons authorised to invest in deposits under the scheme.
   
   
5. Options under the Scheme: A deposit may be made under cumulative interest option or non-cumulative interest option. Under the non-cumulative interest option, interest on the deposit will be compounded quarterly and paid on 31 January and 31 July every year. An option once selected will not be permitted to be changed except on renewal of deposits. Where no option is indicated in the application form the deposit will be treated as placed in cumulative interest option.
   
   


6. Interest Payments: Interest will begin to accrue from the date of realisation of cheque and shall cease to accrue on the date of maturity of the deposit, unless the deposit is renewed as per terms. Under the cumulative interest option, interest shall be paid on maturity of deposit along with principal amount. All interests shall be calculated on the basis of a year of 365 days and actual number of days elapsed. Income tax shall be deducted at source, wherever applicable. NABARD shall pay interest at originally contracted rate on deposit amount for holiday/Sunday/non-business day intervening between the date of maturity of the TDR and the date of payment of proceeds of deposit on the succeeding working day.



7. Joint Deposits: In case of individuals, deposits will be accepted in the joint names of not more than three persons. No request for any change in the order of joint depositors or replacement of any joint depositor will be entertained. Payment of interest and repayment of principal amount of deposit shall be made by NABARD to the first named depositor. All communications in relation to the deposit will be addressed only to the first-named depositor. Any discharge given by the first named for the repayment of deposit and payment of interest shall be valid and binding on all joint depositors and shall constitute good, valid and effectual discharge to NABARD.
   
   
8. Term Deposit Receipt : The Term Deposit Receipt (TDR) is not transferable. The TDR will be despatched by NABARD to the address of the sole/first named depositor. In the event of loss, theft, destruction, mutilation or defacement of TDR, a duplicate TDR may be issued by NABARD subject to compliance of terms and conditions including furnishing of such indemnity duly signed by the depositors as may be deemed fit by NABARD. All expenses in this connection shall be borne by depositors.



9. Succession:  In the event of death of the sole depositor, the deposit amount and interest due thereon will be paid by NABARD to legal heirs/ representatives of the deceased depositor on production of proper legal representation to the satisfaction of NABARD. However, if the sole depositor has duly registered nomination with NABARD as provided for in the application for deposit, the proceeds of the deposit shall be paid to the nominee without reference to his/her heirs and/or legal representatives upon submission of the death certificate of the deceased first named depositor.  In the event of death of the first-named depositor, the deposit amount and interest due thereon will be paid to the surviving depositor(s) in accordance with the instruction given in the application for deposit, upon production of death certificate of the deceased depositor and such other documents as may be deemed necessary by NABARD, without reference to his / her heirs and / or legal representatives.  Upon payment made by NABARD in the manner aforesaid, it shall be fully released and discharged from all liabilities with respect to payment under the deposit. Person (s) claiming payment of the deposit shall be required to surrender the TDR to NABARD.
   
   
10. Date of Maturity: The term deposit will mature on the 1st day of the month, succeeding the month in which the investment has been made. If the date of maturity falls on a Saturday / Sunday or a holiday for Head Office of  NABARD, the repayment will be made on the next working day, however, the interest on investment will cease from the date of maturity.



11. Repayment/Renewal of Deposit: The term deposit receipt duly discharged by the sole / first-named depositor on revenue stamp of requisite value shall be surrender to any of the offices of NABARD atleast one month prior to the date of maturity for the purpose of repayment.  The repayment of deposit inclusive of interest, if any, payable thereon will be made by means of a crossed cheque marked “A/c Payee Only”. No intimation or notice will be given by NABARD with regard to date of maturity of the deposit and interest. For renewal of overdue deposit receipts, the same should be presented within a month of original date of maturity. 

The deposits may be renewed by NABARD at maturity subject to the terms and conditions of TDR in force at the time of renewal. Request for renewal of deposits shall be made by the depositor/s atleast one month prior to the date of maturity by submitting a fresh application in the prescribed form duly signed and completed in all respects along with the TDR duly discharged as mentioned above.  Deposits under cumulative interest option may be renewed under any of the options then available under the NABARD termed deposit scheme for a higher / lower multiples of Rs.1000/- or such other multiple as may then we specified by paying the differential amount by a cheque / DD / pay order drawn on a schedule Bank in favour of NABARD.

12. Premature withdrawal of Deposits : Request for premature withdrawal of deposits before completion of one year due to death of depositor, medical exigencies, educational expenditure and other such reasons will only be considered. However, no interest will be paid for withdrawal before six months. In the event of premature withdrawal of a deposit between six months and one year, the rate at which interest shall be payable on such deposits will not succeed the saving bank rate as specified by RBI for scheduled commercial banks. Beyond one year, applicable reduction will be made from the agreed interest rate on account of premature withdrawal.

In the case of premature withdrawal of deposit under non cumulative interest options, the excess amount, if any, being the difference between amount of interest already paid at the rate stated in the TDR and interest payable at the above applicable reduced rate owing to premature withdrawal shall be deducted by NABARD from the principle amount of deposit and resultant balance amount shall be paid by NABARD to the depositor(s) / person(s) entitle thereto.  Similarly, for premature withdrawal of deposit under cumulative interest option, the maturity value of the deposits will be recalculated on the basis of applicable interest rate and the revised maturity value shall be paid by NABARD.

13. Tax Deduction at Source : NABARD will deduct income tax at source from interest on deposit in accordance with the applicable provisions of the Income Tax Act, 1961 in force from time to time.  NABARD shall not be liable to refund to the depositors the amount of tax that may have been already deducted and remitted to Income Tax Authorities.
    
    
14. Change of Address : Change of Address, if any, of the sole/first named depositor shall be lodged in writing with the Head Office of NABARD at least one month before the date on which the payment falls due.
    
    
15. Loan against Deposit : NABARD will not provide any loan against deposits under this Scheme.  However, loan facilities may be availed by the depositor(s) from other Banks against the security of the TDR issued by NABARD.
    


16. Nomination Facility : Nomination facility is available under the Scheme to a sole depositor who may nominate any adult individual competent to contract, to whom proceeds of the deposit would be payable in the event of death of the depositor. For the purpose, particulars of nomination may be filled in at the appropriate place in the application for deposit.