Terms & Conditions governing Term Deposits
To be read in conjunction with Axis Bank Sri Lanka General Terms and Conditions
Contents
1.
Scope of this document ..................................................................................................................................... 1
2.
Product details and features ............................................................................................................................. 1
3.
Process flow ........................................................................................................................................................... 6
4.
KYC / AML diligence............................................................................................................................................ 7
5.
Complaint handling mechanism ...................................................................................................................... 7
Annexure I .......................................................................................................................................................................... 8
Annexure II ......................................................................................................................................................................... 9
1.
Scope of this document
This document aims to define the terms and conditions governing acceptance of term deposits by
branches of Axis Bank in Sri Lanka. For general terms and conditions governing all deposits please refer to
document “Axis Bank Sri Lanka General Terms and Conditions”.
2.
Product details and features
i. Account type
ii. Who can open an account
in DBU
iii. Who can open an account
in FCBU
iv. Minimum requirements to
open an account
v. Linked operative account
vi. Mode of operations:
Individual Accounts
Joint Accounts
Proprietorship Firms
Term Deposits placed for a fixed period and repayable on expiry
of the fixed period.
1. Individuals (Single or Joint); including non-residents;
2. Proprietorship Concerns;
3. Partnership Firms;
4. Limited Companies;
5. Corporations
6. NGO‟s
7. Association, Clubs, Societies, Trusts etc.
8. Executors and Administrators and Liquidators;
9. Banks.
1. Non-resident Sri Lankan;
2. Non Nationals;
3. Companies registered outside Sri Lanka; and
4. Companies registered with the board of Investment (BOI) in Sri
Lanka.
1. The primary customer must be aged 18 years or more.
2. The customer should be able to submit a valid proof of identity
and a valid address and undergo successful checks as per Axis
Bank’s policies in this regard.
3. Firms and Companies should produce the prescribed
documents establishing the identity and address of the firm /
company along with KYC of Authorised signatories as per
regulatory requirements of Sri Lanka and undergo successful
checks as per Axis Banks policies in this regard. For details refer
Annexure II
1. The customer has the option to have an existing Axis Bank
Savings / Current Account or open an Axis Bank Savings /
Current Account along with the Axis Bank Term Deposit
Account for ease of crediting of periodical interest or maturity
proceeds.
2. If the Term Deposit account is a joint account then the linked
operative account also has to be a joint account in the same
name and right.
3. If the Term Deposit account is operated through a power of
attorney holder, then the linked operative account also has to
be operated through the same power of attorney holder.
1. Singly by the customer; or
2. The Power of Attorney Holder.
1. Jointly by all the Holders; or
2. Either or Survivor; or
3. Former or Survivor; or
4. Any One or Survivor.
1. Singly by the proprietor; or
2. The Power of Attorney Holder.
(Signature of the proprietor under the firm‟s stamp)
Partnership Firms
Public and Private Limited
Companies
vii. Minimum deposit amount
1. Jointly by all partners; or
2. Either of the partners (where there are 2 partners), as specified
by partnership deed; or
3. Any one partner (where there are more than 2 partners), as
specified by partnership deed; or
4. Jointly by any two (or three or more) of the partners, as
specified by partnership deed; or
5. Singly as specified by partnership deed; or
6. The Power of Attorney Holder as applicable.
1. As per board resolution of the company.
Fixed Deposits DBU
LKR
5,000.00
USD
100.00
Recurring Deposits DBU
LKR
1000.00 and in multiples of LKR 500.00 thereon
viii. Maximum deposit amount
ix. Currency
x. Tenor
xi. Loyalty rates
For FCBU the Bank will be guided by the Banking Act & Exchange
Control Laws of Sri Lanka.
No maximum deposit limit.
There are no regulatory restrictions on the maximum deposit
amount.
Sri Lankan Rupee
LKR
US Dollar
USD
This list may be amended from time to time in tune with Central
Bank of Sri Lanka (CBSL) guidelines.
The deposit tenor for LKR Fixed Deposits can vary from 7 days to 5
years.
The deposit tenor for Fixed Deposits in any other currency can vary
from 1 month to 5 years.
In case of Fixed Rate Recurring Deposit the tenor can vary from 1
year to 5 years,
The number of buckets may be determined by Head Office
(Treasury).
Not Applicable.
Page 2 of 12
xii. Tax status - Withholding Tax
xiii. Bonus payments
xiv. Interest rates
The customer is required to submit a declaration in the format
prescribed by the Inland Revenue Department, at the beginning
of the financial year.
The Bank is required to deduct withholding tax from the sum of
interest paid and interest accrued to the customer, based on this
declaration and to deposit this with the Government at prescribed
intervals in the prescribed manner as laid down in Section 133 of
the Inland Revenue Act No 10 of 2006, as amended up to date.
The customer will be provided with a certificate of tax deducted in
the prescribed format. Bank will also maintain all records in the
prescribed manner.
Further details provided in Annexure I
No Bonus is payable on any Term Deposits.
1. Interest rates on deposits– The Head Office (Treasury) will be
responsible for setting deposit rates and reviewing them from
time to time.
2. Preferential rates– The Head Office (Treasury) may decide to
offer Special Rates to extra high value deposits, say
Rs.5,00,00,000.00 or above, subject to regulatory restrictions, if
any.
3. Special rates– The Head Office (Treasury) may decide to offer
Special Rates to certain customer segments, subject to
regulatory restrictions, if any.
4. Age Based Special rates– The Head Office (Treasury) may
decide to offer Special Rates to certain age groups, like Senior
Citizens, subject to regulatory restrictions, if any. Such rates will
only apply if the customer has already attained the applicable
age at the time of placement / renewal of the deposit, and will
not be changed during the tenure of the deposit.
5. Interest quote- Interest rates quoted to clients should state the
AER, Gross rate and the Net rate.
AER means Annual Equivalent Rate. AER illustrates what the
interest rate would be if interest was paid and compounded
each year. It allows the client to easily compare different offers.
Net rate is the rate payable after the deduction of withholding
tax at the highest prevailing rate. As the rate of tax may vary,
the net rate is given for illustration only and is rounded to two
decimal places.
Gross rate is the rate at which interest is paid without
withholding tax being deducted.
6. Historic rates- The Bank will maintain and make available to
customers the historic interest rates on deposits.
xv. Interest payment frequency The customer would have the option for interest payout as per the
periods given below
1. Monthly
2. Quarterly
3. On Maturity
If the customer has not opted for a frequency of interest payment,
it will automatically be paid at the time of deposit maturity.
Page 3 of 12
xvi. Interest payment method
xvii. Review of interest rates
xviii. Updation of interest rates
xix. Value dating of term
deposits
xx. Loyalty rates
xxi. Fees and charges
xxii. Maturity
xxiii. Renewal of deposits
1. Term Deposits will have two variants of interest calculation.
2. Monthly schemes (MIC) will have a MONTHLY calculation and
monthlypayout (without discount).
3. Quarterly schemes (QIC) and cumulative schemes (RIC) will
have quarterly payout or compounding.
4. Interest can be credited to the customer‟s operative account,
sent as a Pay Order or compounded in case of cumulative
schemes.
5. The Bank would treat a year as 360 days 0r 365 days depending
on market practice for different currencies.
Interest rates for Term Deposits will be reviewed by the Head Office
(Treasury) on a regular basis.
The rates as determined by the Head Office (Treasury) will be
updated in Finacle and the website prior to introduction of the
new rates. Latest interest rates would be displayed at the Branch,
and the Bank‟s website.
Value dating of Term Deposit will be allowed up to a period of
FOURTEEN days. Exceptional cases would be considered by the
Branch Head and Operations Head only with prior approval from
the Central Office.
Not Applicable.
Nil.
The due date of Term Deposits is to be calculated by including the
date of deposit and excluding the date of payment.
When a due date for payment of a Term Deposit falls on a nonworking day, the deposit will be repaid on the next working day. In
such cases, interest would be paid on the deposit amount at the
original contracted rate for the intervening non-working day(s).
If the customer has opted for an auto renewal option, then the
deposit will be renewed at the rate prevailing on the date of
maturity for the corresponding amount and tenure of the deposit
as at the time of maturity. Either the principal or the principal
together with the accrued interest can be reinvested.
If the customer has not opted for an auto renewal option nor
given any alternate instructions, the funds on maturity of the
deposits will be transferred to the customers‟ operative account or
a pay order as applicable.
1. Customers have the option of renewing the Term Deposits on
maturity on fresh terms, rates, and tenure, with effect from the
date of maturity. Rate of interest will be as per the rate existing
on date of maturity of the deposit. A maximum grace period
of 14 days will be allowed for the purpose of such renewal.
2. In case there is a change in the interest rate after the date of
maturity of the original deposit and before the date of receipt
of customers instructions for renewal (within the grace period
of 14 days), the customer can avail of such changed rate only
if the deposit is made as a fresh deposit with effect from the
date of such change. In such case value dating from the date
of maturity of the original deposit shall not apply.
3. In case a customer attains SENIOR CITIZEN status during the
tenure of the deposit, and if the Bank is offering special rates
for such status, the special rate will not apply automatically
during the tenure of the deposit.
4. In case a customer attains SENIOR CITIZEN status during the
tenure of the deposit, and if the Bank is offering special rates
for such status, the special rate will not apply automatically at
the time of AUTORENEWAL of the deposit. Such deposits will
necessarily have to be made afresh at the specific request of
the customer.
Page 4 of
12
xxiv. Premature withdrawal
xxv. Deposit confirmation and
statements
xxvi. In the event of death
xxvii. Deposit protection
xxviii. Security features and
access control
1. For individuals, request for repayment / renewal of deposits
before maturity should be made by all the depositors who
signed the account opening request irrespective of instructions
of mode of operations of account. However, in case of
„Former or Survivor‟, such requests can even be made under
the signature of the former account holder only.
2. For partnership firms, request for repayment / renewal of
deposits before maturity should be made by all the partners
who signed the account opening request irrespective of
instructions of mode of operations of account.
3. For premature withdrawal or renewal before maturity of Term
Deposits, the guidelines as advised by the bank from time to
time and as applicable to the deposit at the time of making
the original deposit should be followed.
4. Interest will be paid only for the period the deposit has actually
remained with the Bank, at the rate applicable for the said
period / interest slab (as the case may be) as prevailing on the
date of making the deposit.
The customer will be issued a Fixed Deposit Receipt (FDR) or
Recurring Deposit Passbook, as the case may be, on opening the
deposit and a maturity notice prior to maturity of the deposit. The
FDR will contain among others the following information:
1. The Term Deposit account number;
2. The principal amount;
3. The Gross interest rate;
4. The tenor of the deposit;
5. The maturity date;
6. Premature closure terms;
7. The maturity amount;
8. Details of Nomination.
The customer will also be sent a tax certificate wherever
applicable, as per regulations prevailing in Sri Lanka.
1. In case of death of the customer (other than joint accounts) the
Nominee(s) is / are entitled to monies lying in the customer‟s
account. If no nominee has been appointed, then the law of
succession in Sri Lanka will apply.
2. Interest will be paid only for the period the deposit has actually
remained with the Bank, at the rate applicable for the period /
interest slab as prevailing on the day of making the deposit.
3. The legal Claimants shall have the option of waiting till the
maturity of the deposit. In such cases, the name of the primary
holder will be replaced in Finacle with the name of the legal
claimant / nominee, as the case may be. This will be done by
the Branch Head and Operations Head only.
4. The Bank shall always call for a death certificate, grant of
probate, certificate of confirmation and / or grant of
representation or any other document it may deem necessary
and sufficient for establishing the genuineness of any claim
before allowing access to any of the funds in the account.
The Bank will be covered by the Sri Lanka Deposit Insurance
Scheme (SLDIS), as per the details in the document “Axis Bank Sri
Lanka General Terms and Conditions”.
Serially Numbered blank FDR stationery would be maintained at
the branch. Such stationery should be stored at the branch in the
same manner as other security stationery. Printing of the FDR will
be done at the branch. Account numbers will be generated and
printed from Finacle.
Page 5 of 12
xxix.
Bank‟s liability is restricted to repayment of the Principal along with
Interest for the period the deposit has actually remained with the
Bank, at the rate applicable for the period / interest slab as
prevailing on the day of making the deposit.
Repayment will be subject to Bank‟s policies with regard to
premature encashment and also Government policies with regard
to deduction of Withholding Tax at source.
Liability
Under the SLDIS, eligible depositors are covered to a limit of LKR
200,000.00 per Bank, across all deposits and all currencies.
3.
Process flow
Customer can open an Axis Bank Term Deposit Account by visiting the branch. Online banking would be
available, once the facility is enabled.
The process flow is as under:
Activity
Opening
Account –
New
Customer
Customer
Visits the Branch with
relevant
documents
opening of account.
Opening
Account –
Existing
Customer
a. Visits the Branch
and a. On receipt of the application, the Bank to verify if all
submits the completed
information is in order and open the account.
additional AOF.
b. When
Online Banking
becomes operational the
customers having
an
operative account with
net banking facility can
also submit an
online
application for opening
the
Term
Deposit
account.
a. Deposits amount into the a. Bank to debit the operative account and fund the
operative account and Term Deposit account.
authorizes Bank to debit
b. If Cheque is returned unpaid the Bank to contact the
the same for funding the customer and advise on the status.
Term Deposit.
c. On successful funding, Bank to print the Fixed Deposit
b. Deposits amount directly
Receipt or issue Recurring Deposit (RD) passbook, as
into the
Term Deposit applicable.
account through cash or
cheque.
Account
operation
Bank
all a. On receipt of the application, Bank to verify if all
for
information is in order and carry out the KYC checks.
For list of documents required, please refer to
Annexure II
b. If successfully processed, Bank to open the account.
c. If not successfully processed the customer is to be
advised of the additional information / documents
required.
d. If KYC / AML process fails, the Bank will
 Seek documents (ID / Address Proof
fromcustomer) to enable completion of the
process.
 If Bank is unable to conduct the KYC, for
anyreasons, despite best efforts, the Bank to
intimatecustomer of its inability to open the
account.
c. Provides
request
for d. On receipt of the instruction Bank will close the
encashment or renewal deposit and credit the operative account or remit
along
with
the the funds as per customer instruction.
discharged FDR
/ RD e. For renewal, Bank to print the Fixed Deposit Receipt
passbook as applicable. after renewal.
d. Provides instruction for
disposal of interest.
e. Provides instruction for
disposal of principal.
Others
4.
Submits request for change
in linked account details.
On receipt of the request Bank will make necessary
changes in Finacle.
KYC / AML diligence
The Bank will have a stringent Know Your Customer (KYC) checking policy and no account will be
opened without it being KYC compliant. Regarding KYC/ AML checks the bank will be extremely prudent
and will practice physical verification. Online Banking facility, when enabled, will be only provided to
customers who are fully KYC compliant.
5.
Complaint handling mechanism
6.
The Bank has a system in place for fair and expeditious handling of customer’s grievances.
Customers may send mail to complaints.slk@axisbank.com for this purpose. For more details,
please see Complaint Handling Procedure in our website.
Page 7 of 12
Annexure I
The regulations governing Withholding Tax for Sri Lanka are summarized below:

All tax calculations pertain to Domestic Banking Unit (DBU) (SOL 921) only.

All accounts in the Foreign Currency Banking Unit (FCBU) (SOL 922) are exempt from tax. All tax
calculations pertain to Lanka Rupee (LKR) currency only.

The interest from all types of liability accounts (Savings, Term Deposits, and Recurring Deposits) is
considered for withholding tax.

The interest includes interest paid and interest accrued to the applicable accounts.

The withholding tax will be considered at the customer level for the BANK as a whole, and not at
the BRANCH level.

All customers will be required to give the Income declaration in the prescribed form at the
beginning of the financial year.

All COMPANIES are to be taxed at 10.00% only, no slabs, no exempt limits.

All Certificates of Deposit (CD) are to be taxed at 10.00% only, no slabs, no exempt limits.

All PARTNERSHIP FIRMS are to be taxed at 8.00% only, no slabs, no exempt limits.

All CHARITABLE TRUSTS income declaration can have two slabs
o Interest upto LKR 500000.00 NIL.
o Interest above LKR 500000.00 8.00%.

INDIVIDUALS customer income declaration can have three slabs
o Interest upto LKR 500000.00 NIL.
o Interest above LKR 500000.00 upto LKR 1500000.00 2.50%.
o Interest above LKR 1500000.00 8.00%.

In case of JOINT HOLDERS, if there is no mandate from the customer, the interest is to be equally
apportioned amongst all the joint holders.

In case of SAVINGS ACCOUNTS the interest upto LKR 5000.00 PER MONTH PER CUSTOMER is
exempt from tax.

If an individual has more than one savings account, then the exemption of LKR 5000.00 per month
is for one account only. This account number has to be mentioned by the customer and
captured by the system.

Even if the declaration by the individual customer is different from the interest ACTUALLY earned
from the bank, tax will be deducted on the basis of the declaration, and not as per the actual
accrued interest amount. In such cases a report will be required so that the users can contact the
customers for a revised declaration.

In case the declaration by the charitable institution is different from the interest ACTUALLY earned
from the bank, tax will be deducted on the basis of the declaration, and not as per the actual
accrued interest amount. In such cases a report will be required so that the users can contact the
customers for a revised declaration
Page 8 of 12
Annexure II
DOCUMENTS REQUIRED BY THE BANK FOR COMPLETION
The following table details the documents that are required to open an account.
Please ensure that all Documents mentioned below are submitted along with the Account Opening
Form
Documents /
Requirements
Limited
Partnershi
p
Company
Sole
Proprietors
hip
Clubs,
NGOs,
Societies
&
Individuals
Trusts
Account Opening Form

Mandate / Board
Resolution

Partnership Agreement
▪▪▪▪



the Bank



Certificate of
Incorporation /
Certificate of Re
Registration ▪
Articles of Association ▪
List of Directors ▪ (Form
48 /



Form 20 / Form 1)
Business Registration




Certificate ▪
Constitution / Rules ▪

National ID or Passport
copies
of





Authorized Signatories ▪
Utility Bill copies of
Authorized
Signatories if address
differs
from NIC



Document
s
received
by
BOI Agreement Section
17


and Certificate ▪▪
Export Development
Board
(EDB) Certificate or
Exchange




Control Approval ▪▪▪
Approval from relevant
Government Ministry /
Authority

Placing of rubber stamp



alongside signatures ▪▪▪▪▪
▪
Documents should be certified by Company Secretaries / Notary Public or Original Document to
be sighted by any official of Axis Bank
▪▪
Requested for accounts to be opened in Foreign Currency Banking Unit (FCBU) - In the name of
Companies
Incorporated in Sri Lanka and authorized to open accounts in the FCBU
▪▪▪
For Exporters' Foreign Currency Accounts
▪▪▪▪ In case of Partnerships, please produce the original of "Partnership Agreement"
▪▪▪▪▪ Authorized Signatories should place rubber stamp alongside signatures
Page 9 of 12