Terms & Conditions – Fixed Deposit
1. Customer Eligibility
- 1.1 Any person, other than a natural person, located in IFSC notified SEZ, or companies/corporations outside India (subject to the laws, regulations, etc, of their respective jurisdictions), or any other entity(ies) approved by RBI in this regard shall be eligible to avail of deposit facilities provided by IFSC Banking Unit referred as IBU.
2. Contractual Terms
- 2.1 Deposit account and the business relationship between Customer and IBU shall be governed by the provisions of the application form submitted by the Customer as well as the General Terms & Conditions governing all products, services and channels of IBU that may be amended from time to time.
3. Date of Fixed Deposit
- 3.1The date of Fixed Deposit shall be the later of the following
- The date of credit of funds in the IBU Nostro account; or
- The receipt of complete documentation that must be free from any discrepancy
- 3.2 Subject to the receipt of original form of documents within a period of 5 working days, the documents may be processed, at the discretion of IBU, upon receipt of optically scanned copies of documents or copies sent through facsimile (provided that fax indemnity is in place).
4. Minimum Deposit
- 4.1 The initial deposit must be for at least USD 10,000/- i.e. ten thousand US dollars only (or equivalent). This requirement may be modified at any time in the future, subject to regulatory limits applicable at the time.
- 5.1 IBU may accept deposits for a tenure ranging from not less than period of 1 year as per RBI regulation to a maximum of 5 years.
- 5.2 IBU reserves the right to reject a deposit altogether for any reason whatsoever.
6. Modes of funding
- 6.1 The payment for opening a deposit can be made using the following modes:
- Foreign currency denominated cheques/demand drafts (only for USD deposits),
- International wire transfer to IBU Nostro Accounts as listed in the Annexure to the General Terms and Conditions.
- 6.2 As per the mandate of RBI, IBU shall not accept any cash deposits.
7. Fixed Deposit Receipt / Memorandum of Deposit
- 7.1 Deposit Confirmation Advice shall be sent to the Customer on _registered email address/ communication address upon booking of the deposit account and/or renewal of the deposit. (E-communication)
8. The Customer shall not create or permit to subsist, any encumbrance or third party interest over or against the deposit with IBU or any monies lying therein without the prior written consent of IBU.
- 9.1 No cheque books or other value added facilities shall be provided to the Customer.
- 9.2 All remittances shall be made through wire transfers and/or electronic payment systems based on written instructions of the Customer received by mail or facsimile (if fax indemnity has been provided beforehand).
10. Cut-off Time
- 10.1 All instructions sent by the Customer, including those sent through facsimile, must be received by IBU before 2:30 pm or 1400 Hrs. IST (Indian Standard Time) on a working day of IBU.
- 10.2 Instructions received at any time after the aforementioned time shall be deemed to have been received on the next working day.
- 11.1 The Customer must provide maturity instructions in writing to IBU at least 15 days prior to the maturity date for deposit accepted for more than 3 months. For deposits less than 3 months, 5 days’ notice is required.
- 11.2 Maturity instructions may either be provided at the time of opening of deposits on the Account Opening Form or separately as per the maturity instruction format provided separately.
- 11.3 The clients can also send the same through fax. However, to avail of the same, fax indemnity must be provided beforehand.
- 11.4 In the absence of prior instructions, the deposits along with the interest amount would be renewed automatically for the same tenure and at the prevailing rate of interest on maturity date and on the same or varying terms and conditions as may be stipulated by the IBU. If the Customer approaches IBU to change the tenure and/or interest amount thereafter, then the automatic renewal shall be treated as a premature withdrawal leading to the closure of the Fixed Deposit. A new Fixed Deposit shall be opened from the date of such closure.
- 11.5 In cases where the client issues a standing instruction to renew the deposit, the maturity date of the deposit shall be changed to the new date on a daily basis.
12. Payment of Interest on Fixed Deposit
- 12.1 Interest shall be computed as follows:
- On a floating basis basis
- For deposits of tenure more than 12 months, the interest shall be compounded annually.
- 12.2 Interest shall accrue on a daily basis. 12.3 Interest would be paid out either upon maturity or upon withdrawal of the deposit. 12.4 If the maturity date falls on a holiday, Sunday, or non-business working day, interest shall be computed for such intervening day/s at the original rate till the next working day.
- 13.1 Deposits placed with IBU are not covered by deposit insurance by the Deposit Insurance and Credit Guarantee Corporation of India. It shall be the sole discretion of the IBU to determine whether or not to provide any kind of insurance cover for the deposits. The nature of the insurance, if any shall also be at the sole discretion of the IBU.
14. Tax Deducted at Source
- 14.1 Tax at source, if applicable, may be deducted from the interest on fixed deposit, as per Income Tax Act, 1961 or any other applicable taxation laws, rules, regulations, etc.
15. Premature closure of Fixed Deposits
- 15.1 In the event of the fixed deposit being closed before expiration of the original term of such deposit, interest shall be paid at the rate applicable on the date of deposit for the period for which the deposit has remained with IBU. However, as per RBI Regulations, Customer cannot withdraw the Fixed Deposits before the expiry of one year.
- 15.2 Such a withdrawal may be subject to penalty based on factors that may include but not be limited to:
- Cost of arranging funds from alternative source,
- Break cost,
- The rate of interest at the time of original deposit for the tenure for which the funds were actually kept with IBU,
- The deposit may be subject to penal rate of interest as prescribed by IBU on the date of deposit.
16 At the discretion of IBU, loan against the fixed deposit maybe given to the depositors, in whose name the deposit has been opened and who are authorised to withdraw the deposit, as per original mandate
Terms and Conditions applicable to both Current Account and Fixed Deposit
1. The Customer shall intimate IBU, in writing, of any change in address and/or status, circumstances, etc. that may affect its eligibility to continue to avail of the products, services and channels provided by IBU. All taxes, duties, levies or other statutory dues and charges applicable in connection with the benefits accruing as per these Terms will be recoverable from the Customer.
2. Change of Terms:
IBU shall have the absolute discretion to amend or supplement any of the Terms at any time relating to the Account/Deposit and/or the Services provided for / in connection with the same. IBU may communicate the amended Terms by hosting the same on the Website
3. Compliance with the laws:
The Customer shall solely be responsible for ensuring full compliance with all the all the FEMA rules, regulations or notifications thereunder, applicable laws and regulations in any relevant jurisdiction in connection with establishment of his/her/its relationship with IBU and for any/ all the transactions undertaken by the Customer.
4. Force Majeure:
Obligations of IBU contained herein will be subject to any occurrence resulting in prevention from or delay or interruption in performing its obligations if such prevention, delay or interruption is due to Force Majeure event, [which would include any event beyond the reasonable control of IBU, then IBU shall not be deemed to be in default so long as any such cause or the effect thereof persists and during a reasonable period thereafter within which any such obligations are not capable of being fulfilled. IBU shall not be liable for any action or claim, from any party, arising out of its inability to perform the obligations for the reasons stated herein.
The Customer hereby agrees that he/it shall indemnify and hold harmless IBU from and against any and all liability, any other loss that may occur arising from or relating to the operation or use of the Account/Depsits or the Services or breach, nonperformance or inadequate performance by the Customer of any of these Terms or the acts, errors, representations, misrepresentations, misconduct or negligence of the Customer in performance of its obligations, from and against all actions, proceedings, claims, losses, damages, costs, interest which may be brought against or suffered or incurred by IBU in resolving any dispute relating to the Customer's Account with IBU or in enforcing the rights of IBU under or in connection with the Terms and conditions contained herein, or which may have arisen either directly or indirectly out of or in connection with IBU performing its obligations hereunder or accepting instructions and acting or failing to act thereon. Under no circumstances shall IBU be liable to the Customer for any direct, indirect, incidental, consequential, special or exemplary damages in connection with the Account or the Services. If any sum due and payable by the Customer is not paid on the due date, including without limitation any moneys claimed under this Paragraph, the Customer shall be liable to pay interest (both after as well as before any judgment) on such unpaid sum at such rate or rates as IBU may from time to time stipulate from the date the payment is due up to the date of payment. The indemnities specified herein shall continue notwithstanding the termination of the Account/expiry of Deposit.
6. Banker’s right of lien and set-of
IBU shall have the irrevocable and continuing right of set-off and lien on all accounts/deposits of the Customer with IBU, whether in single name or joint name(s), to the extent of all outstanding dues to the IBU until repayment of all such moneys due. For such purposes, IBU may at its sole discretion close the deposit(s) prematurely and apply a penal rate of interest in respect of the same. The IBU's and its group companies’ rights hereunder shall not be affected by the Customer/s’ bankruptcy, death or winding-up. In addition to the above mentioned right or any other right which IBU and its group companies may at any time be entitled whether by operation of law, contract or otherwise, the Customer authorises IBU: (a) to combine or consolidate at any time all or any of the accounts and liabilities of the Customer with or to any branch of the Bank and/or its group companies; (b) to sell any of the Customer/s’ securities or properties held by IBU by way of public or private sale without having to institute any judicial proceeding whatsoever and retain/appropriate from the proceeds derived there from the total amounts outstanding to IBU and/or it group companies from the Customer/s, including costs and expenses in connection with such sale; and (c) in case of cross currency set-off, to convert an obligation in one currency to another currency at a rate determined at the sole discretion of IBU and/or its group companies. IBU shall not be under any obligation to exercise any of its rights under this Paragraph. The above mentioned rights of IBU are without prejudice to the obligations of the Customer to pay to IBU when due all its indebtedness and without prejudice to any other rights that IBU may have against the Customer for recovery of outstanding from Customer to IBU/its group companies.
7. Governing Law: -
The laws of India shall govern these Terms the Parties hereby agree that any legal action or proceedings arising out of the Terms shall be brought in the courts or tribunals at Ahmedabad in India and irrevocably submit themselves to the jurisdiction of such courts and tribunals. IBU may, however, in its absolute discretion, commence any legal action or proceedings arising out of the Terms in any other court, tribunal or other appropriate forum, and the Customer hereby consents to that jurisdiction. Any provision of the Terms that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of prohibition or unenforceability but shall not invalidate the remaining provisions of the Terms or affect such provision in any other jurisdiction.
The Customer hereby irrevocably authorises IBU to disclose, as and when IBU is required to do so in order to comply with the applicable laws or when IBU regards such disclosure as necessary or expedient, (including but not limited to disclosures for the purpose of credit review of any Account, service/s or credit facilities received by the Customer from IBU whether singly or jointly with others or otherwise), any information r elating to the Customer, his/her Account(s) or other assets or credit facilities whatsoever held on the Customer's behalf.