Punjab National Bank offers the special recurring deposit scheme for institutions and other Government bodies. This recurring deposit scheme is provided with features like nomination facility, loans and advances, flexible deposit amounts and tenures for account holders.
Eligibility
The PNB Special Recurring Deposit can be opened by private institutions, Government institutions, Corporate bodies, PSUs, etc. The institution can open the PNB Special Recurring Deposit account in the name of their employee. Companies can open recurring deposit accounts with a minimum of 10 employees or with 75% of their eligible employees, whichever is lower.
Features of PNB Special Recurring Deposit
Deposit Amount
Companies can start their PNB Special Recurring deposit accounts with a minimum deposit of Rs. 10 and can be increased in multiples of Rs. 1. The deposit amount has to be determined as per the PF deductions done for their employees.
Deposit Tenure
The PNB Special Recurring Deposit account can be opened with tenures ranging from 6 months to up to 120 months as per the requirement of the employer. If the employer wants to extend the tenure beyond that the old account will be closed and a new deposit account will be opened for the intended period with prevailing interest rates and according to RBI guidelines.
Nominations
The nomination facility will be extended as per Punjab National Bank guidelines.
Interest Payment
Interest paid for PNB Special Recurring Deposit accounts below Rs. 1 crore will be as per the CARD rate. For SF accounts, the interest will be credited to the customer’s account on a half-yearly basis, during the months of March and September.
Premature Closure or Withdrawal
Premature withdrawals cannot be done for PNB Special Recurring Deposit accounts without getting permission from the employer.
Loans and Advances
Account holders might be sanctioned loans with prior sanction from the institution and as per L&A Circulars given by IRMD (Credit Policy Section).
Tax
Income tax is not deducted at source for PNB Special Recurring Deposit accounts.
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