PUNJAB GRAMIN BANK

HO: JALANDHAR ROAD, KAPURTHALA

TO ALL OFFICES                                                            Date: 01.02.2007

NEW TERM DEPOSIT SCHEME – “PGB MAHA BACHAT”

 Keeping in view the incremental growth in credit which has almost been double that of deposits mobilization & there is no sign of slowing down of the demand of credit in the economy in near future and to avoid severe liquidity crunch if deposit is continued to be mobilized at present pace and not accelerated, we are introducing a new Fixed Deposit Scheme – “PGB MAHA BACHAT” for a limited period. 

It is expected that with the introduction of this scheme, branches will be able to mobilize sizable amount of deposits under this scheme and this will help in reducing the dependence on DRI deposits to a great extent. Additionally, this would help us to retain our existing customers. The scheme is available for limited period of three months i.e., w.e.f., 01.02.2007 to 30.04.2007. Since the scheme is for limited period no separate format of FDR is required. So branches are advised to affix a rubber stamp on the top of the existing FDR receipt bearing scheme name & lock in period, i.e.”PGB MAHA BACHAT – Lock in period of One year”, so as to differentiate the same from the other Term Deposit receipts. In order to monitor the progress, please submit the progress, detailing the no. of a/cs opened & amount mobilized to the concerned RDOs. The RDMs are requested to consolidate the data and send the same to Head Office on weekly basis within 3 days from the close of the week. 

Incumbents of the branches are advised to mobilize maximum deposit under the scheme by creating immediate awareness about the scheme for which display of banners etc. at conspicuous place may also be made.

 The salient features of the scheme are available at Annexure ‘A’.

 GENERAL MANAGER

 Annexure ‘A’

 NEW FIXED DEPOSIT SCHEME “PGB MAHA BACHAT”

 Eligibility: Any person including a minor, single or jointly with another, proprietorship/ partnership firm, HUF, association, company, corporate body, public/ commercial organization, municipality, panchayat, Government and Quasi-Government body, society, trust, religious, charitable and educational institution can open account under the scheme.

 Amount of Deposits       : Minimum – Rs.1.00 lac

                                         : Maximum – less than Rs.5.00 crore

                                         : In multiples of Rs.10000/- 

Period                              : 1 year to 3 years 

Rate of interest               : 1 year to less than 2 years – 8.50% p.a.

                                        : 2 years to less than 3 years – 8.75% p.a.

                                        : 3 years – 9.00% p.a.

                                          (compounded quarterly)

 Additional 0.25% interest rate shall be payable to Senior Citizens. For Hon’ ably retired ex-staff members who are also senior citizens, MAXIMUM 1% additional rate of interest (including senior citizen rate of interest) would be payable over and above the normal rates under the scheme. For existing staff members 1% additional rate of interest shall be payable over and above the normal rates under the scheme. 

Lock in period: One year 

Loan/ Overdraft: As applicable in our other term deposit schemes.

 Period of scheme: 01.02.2007 to 30.04.2007

 Renewal: The renewal shall be allowed after the maturity of the term deposit, on card rates prevailing on the date of maturity of the term deposit, for the tenor opted by t he customer, as per extant guidelines.

Pre-mature payment: Pre-mature payment/ withdrawal can be made after the initial lock-in period of one year. However, the interest rate payable shall be as applicable as per the period of the fixed deposit has actually run under the scheme.

 Nomination: Available as per extant guidelines of the bank.

 Payment/ collection of the FDR at the branch other than the issuing Branch: The FDR shall be collectable at par at all branches on maturity. Further, the FDR can be transferred from one branch to another branch at any point of time.