FREQUENTLY ASKED QUESTIONS ON EXIM BANK TERM DEPOSIT SCHEME
1.
Who can invest in Exim Bank Term Deposit?
The following investors can invest in Exim Bank’s Term Deposit Scheme :
(a) Resident Individuals (including senior citizens of 60 years of age and
above and disabled persons).
(b) Non-Resident Indians on non-repatriable basis.
(c) Hindu Undivided Family.
2.
Can Senior Citizen invest? What is the age limit for senior citizens?
Yes, persons of 60 years and above are considered senior citizens for this
purpose. They are eligible for a special rate of interest.
3.
Can disabled persons invest?
Yes. Persons with disability can invest. They have to furnish the applicable
documents in connection with the disability. They are also eligible for a
special rate of interest.
4.
Where are the application forms available?
Printed Applications Forms are available free of cost with issue arrangers and
Exim Bank’s Offices. Forms can be printed from Exim Bank’s website at
www.eximbankindia.in.
5.
What documents are required with the application?
Documents relating to the identification of a depositor are mandatory.
Certified true copy of the following documents can be enclosed.
Passport / driving license / Election Identity card and recent electricity bill /
ration card.
PAN card is
Permanent Account No.(PAN) card is mandatory.
not
In case
held Form No.60 or Form No.61 as prescribed in
Income-Tax Rules, 1962 may be submitted (Forms are available at Bank’s
website @ www.eximbankindia.in .
6.
Can a minor be the depositor? What documents are required if fixed
deposit application has to be made in minor’s name?
Yes. Birth certificate, photograph of minor, copy of PAN Card, photograph
and address proof of the Guardian will have to be submitted alongwith the
application. Guardian will have to sign the application.
7.
Can any one other than parents be the guardian?
For a minor, only the father, and in his absence, the mother can be the
guardian. If both are deceased, then the court appointed Guardian is
acceptable. For a Major with unsound mind, only court appointed
guardian is acceptable even if the parents are alive.
8.
How many Nominees can be appointed for receiving proceeds of
FDR?
For
more than one nominee,
minimum percentage of share of each
nominee is to be mentioned.
9.
Is premature withdrawal of Term Deposits possible?
Yes. Premature withdrawal is permitted as per Reserve Bank of India
guidelines for financial institutions in certain situations, such as for example
a. to meet education expenses of children;
b. to meet with medical exigencies
c. decease of the depositor
10.
What is the interest rate payable in case of premature withdrawal?
Period from
Less than 6 months
6 - 12 month1
6
- 12 months
More than 12 months
Interest rate applicable
No interest is payable
Rate permitted by RBI for savings
bank deposits of commercial
banks. At present 3.50% p.a.
Interest rate will be considered at the
time of premature withdrawal by the
Bank based on the tenor for which
the deposits remained and
applicable interest rate for the tenor.
It may be noted that in the case of premature withdrawal, rate of interest will
be lower than the original rate of interest.
In the case of premature withdrawal of deposit under Non-cumulative Interest
Option, the excess amount, if any, being the difference between the amount of
interest already paid at the rate stated in the Term Deposit Receipt and interest
payable at the above applicable reduced rate owing to premature withdrawal
and actual TDS remitted shall be deducted by Exim Bank from the maturity
proceeds of the deposit and the resultant balance amount shall be paid by Exim
Bank to the depositor(s)/person(s) entitled thereto. Similarly, for premature
withdrawal of deposit under Cumulative Interest Option, the maturity value of
the deposit will be reduced on the basis of the applicable interest rate and
actual TDS remitted and the revised maturity value shall be paid by Exim Bank.
11. Which Form is to be submitted for non-deduction of Tax at
source?
Form 15H for senior citizens above 65 years. Form 15G for others.
Forms are available on Exim Bank website www.eximbankindia.in .
12.
Will tax be deducted at source(TDS) on interest payable in Exim
Bank Term Deposits. If so, what is the limit for non-deduction
of TDS?
Yes. Tax will be deducted at source for interest in excess of Rs.5,000/p.a. on aggregate deposits placed with Exim Bank.
13. Commercial banks do not deduct tax@source on interest income for a
F.Y. upto Rs.10,000/-
Why is Exim Bank deducting tax@source on
interest income for a F.Y. above Rs.5000/-?
Clause (d) of sub-section 3 of Section 194A of the Income Tax Act 1961, states
that tax will be deducted where the amount of interest on interest payable other
than on interest securities exceeds Rs.5,000/- . Also, Rs.10,000/- is the limit
for non-deduction of tax where the payer is a banking company to which the
Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or
banking institution, referred to in section 51 of that Act). Since Exim Bank is a
financial institution incorporated under the Export-Import Bank of India Act,
1981, tax is deducted where interest income in a F.Y. exceeds Rs.5,000/-. In
this context it may be mentioned that currently only Exim Bank provides for
flexibility for automatic increase in interest rate for existing depositors whenever
there is an increase in interest rates subject to residual tenor to maturity being
not less than one year from the date of upward revision in the rate of interest by
Exim Bank. In case of a downward revision in interest rates by Exim Bank, the
lower interest rate will be applicable on the deposit subject to the minimum of
the originally contracted interest rate.
14.
Can the depositor get loan against fixed Deposits of Exim Bank?
As per RBI guidelines, Financial Institutions cannot provide loan against
term deposits.
15.
What is the procedure for collecting the maturity proceeds of the
deposit?
The deposit receipt duly discharged on the reverse should be sent
to Exim Bank three weeks in advance. The maturity proceeds will be
remitted so as to reach the investor before the due date by way of a
post dated cheque. In case there is a delay in receipt of discharge of TDR by
Exim Bank, there could be a few day’s delay in processing.
16.
Can we give two different cheques for one application?
No. One cheque for one application only is accepted.
17.
How much time does it takes to process the application?
It takes maximum three weeks to process and finally despatch the
Term Deposit Receipt through Registered A.D.
18.
What is the procedure to get a duplicate of lost FD Receipt/cheque.
Letter of indemnity will have to be given to Exim Bank as per the
prescribed formats on a stamped paper of Rs.100/-.
19.
How is the interest calculated?
Interest is calculated on monthly product basis and compounded
quarterly. Interest on
interest is calculated on net amount after
deduction of tax at source in case of cumulative TDR.
20.
Can TDR be placed / renewed for a period less than 12 months?
As per RBI guidelines Financial Institutions such as Exim Bank are permitted
to accept deposits for periods of 12 months and above upto 60 months.
If you have any query please write your question in the box given below
Q1.
Name of the Investor or TDR No.