TERMS AND CONDITIONS

FIXED DEPOSIT (FD) AND RECURRING DEPOSIT (RD) ACCOUNTS
IDFC FIRST BANK LIMITED

These Terms and Conditions (“Terms”) apply to Fixed Deposit (“FD”) and Recurring Deposit (“RD”) accounts offered by IDFC FIRST Bank Limited (“Bank” or “IDFC FIRST Bank”) to its customers (“Customer”, “Deposit Holder”, “Account Holder” or “Depositor”).

By opening or continuing to maintain an FD or RD with the Bank, the Customer confirms that they have read, understood, and agreed to be bound by these Terms, as amended from time to time.

FIXED DEPOSITS

1. DEFINITIONS

i. "Traditional Fixed Deposits" are Fixed Deposits where interest is paid at regular intervals, i.e., Quarterly or Monthly, as requested by the Customer/s at the time of creating the Fixed Deposits.

ii. “Cumulative Fixed Deposits" are Fixed Deposits where interest is compounded quarterly and reinvested with principal amount.

iii. "Maturity Value" shall mean the amount payable to the Customer at the end of the term of the Fixed Deposit subject to deduction of any tax as may be applicable.

iv. “Maturity Date” shall mean the date on which such Maturity Value is due.

2. Date of Fixed Deposit

The effective date of Fixed deposit shall be the date on which the amounts of deposit placed are realized by / credited to the Bank. No Fixed Deposit Advice will be issued in anticipation of realisation of cheque/s in relation to any deposit and will be issued only on actual receipt of payment / deposit of monies.

3. Fixed Deposit Advice

At the time of placing the Fixed Deposit, a Fixed Deposit Advice shall be issued by IDFC FIRST Bank. An electronic Fixed Deposit Advice shall be sent to the deposit holders on their registered email ID updated with the Bank. Deposit holders can also download the Fixed Deposit Advice using the Mobile Banking app or Internet Banking or can visit any branch to request and obtain a physical copy.

4. Payment of Interest on Fixed Deposits

a. Interest on Fixed Deposits is reckoned/paid at quarterly intervals and at the rate(s) applicable as on the value date of opening of Fixed Deposits, as the case may be, in accordance with the rate fixed by the Bank from time to time as also directives issued by the Reserve Bank of India (RBI) as per applicable law and regulation.

b. The interest may be paid either in a lump sum at the time of maturity or it may be paid every quarter or every month in accordance with the applicable regulations on payment of interest on the Fixed Deposit.

c. The Bank may announce special rates for senior citizens and staff.

5. Methodology of interest calculation

a. The method of calculation on interest on a Fixed Deposit, both Traditional and Cumulative deposits is as under:

b. Interest Rates for tenors up to 180 days are on “simple interest” basis and interest is paid at maturity. Interest Rates on tenors above 180 days are compounded on quarterly basis. However, in case of Traditional Fixed Deposits, interest rates are on simple interest basis irrespective of the tenor.

c. For Traditional Fixed Deposits with quarterly payouts interest is calculated based on annual rates (simple interest). However, in case of monthly payouts, interest is calculated for the quarter and paid monthly at a discounted value. For Traditional Fixed Deposits with quarterly/monthly payout, interest is calculated on the principal amount for actual number of completed days.

d. For Cumulative Fixed Deposits, interest is compounded quarterly on completion of exact quarters. Interest is calculated every quarter and is added to the principal such that interest is paid on the interest earned in the previous quarter as well. For the broken period beyond completed quarters, simple interest is calculated on the cumulative fixed deposit amount for remaining number of days.

e. Interest is calculated based on the actual number of days in a financial year. Calculation of interest is basis 365 days for the period falling in a non-leap (financial) year and 366 days for the period falling in a leap (financial) year.

f. Premature encashment of Fixed Deposits is allowed subject to the Bank's prevailing policy and in accordance with the prevailing regulations of the Reserve Bank of India at the time of encashment. The deposit may be subject to premature closure penalty / recovery of interest already paid at the contracted rate, if any, from the proceeds of the Fixed Deposit.

6. Premature/partial closure of Fixed Deposits

a. In case of Premature withdrawal including partial closure of the fixed deposit, interest shall be paid at the rate prevailing on the date of deposit for the period for which the deposit has remained with the Bank and not at the contracted rate and post deduction of applicable premature closure penalty.

b. Premature closure penalty of 1% shall be applicable on all Fixed Deposits opened and/or renewed on or after May 2^nd, 2019.

c. There shall be no premature closure penalty on Senior Citizen Fixed Deposits.

d. No interest shall be paid, where premature withdrawal of resident/NRO deposits takes place before completion of 7 days. For NRE deposits, no interest shall be paid, where premature withdrawal of deposits takes place before completion of 1 year.

e. For the deposit amount remaining after a partial withdrawal/closure, interest rate remains the same i.e. the rate at which the fixed deposit was originally booked.

f. In case of the Fixed Deposit being prematurely closed for the purpose of reinvestment into another scheme of Fixed Deposit, the existing deposit would be subject to premature closure penalty as prescribed by the Bank on the date of deposit. Interest will be paid at the rate for the period for which the deposit has remained with the bank post deduction of applicable premature closure penalty. The interest rate prevailing on the date of re-investment of the Fixed Deposit will be applicable for the new Fixed Deposit.

7. Auto-Renewal

a. In the absence of any special instructions, the deposit will be renewed on maturity for a like term at the then applicable interest rates.

b. Fixed Deposits shall be auto renewed for the original term of the respective fixed deposits at such rate of interest as would be applicable on that date to the amount being auto renewed.

c. For Traditional Fixed Deposit, the principal deposit amount shall be renewed, while for Cumulative Fixed Deposit the entire maturity proceeds less Tax Deducted at Source (“TDS”) and compounding effect on TDS, if any, shall be renewed.

d. For Fixed Deposits being auto renewed, an electronic Fixed Deposit Advice shall be sent to the deposit holders on their registered email ID updated with the Bank at the time of auto renewal of the Fixed Deposit.

e. Fixed Deposits which are auto renewed on maturity will be treated as a fresh deposit from the date of auto renewal.

f. All terms and conditions applicable to fresh deposits will also be applicable to deposits that are auto renewed.

g. If auto renewal instructions are given, the instructions will continue to be executed till terminated by the account holder.

8. Tax Deducted at Source (“TDS”)

• Tax is deducted at source on interest on Fixed Deposits and Recurring Deposits held by the resident if the interest paid or credited or likely to be paid or credited by the Bank for the financial year exceeds the threshold limit specified under Section 194A of Income Tax Act, 1961, i.e. interest on projected basis in a financial year. Currently, the threshold limit for this purpose is Rs. 50,000/- for non-senior citizens and Rs. 1,00,000/- for senior citizens in a financial year.

• In case of non-resident Fixed Deposit and Recurring Deposit holders, tax shall be deducted at source as per the provisions of Section 195 of Income Tax Act, 1961.

• The tax deducted at source is remitted to the tax authorities on behalf of the customer by the Bank as per the prescribed timelines provided by Income Tax Act, 1961.

• For Traditional Fixed Deposits (with quarterly / monthly interest payment), tax is deducted on each interest payment and on interest accrued on March 31st of every year.

• For Cumulative Fixed Deposits, tax is deducted on interest compounded every quarter, interest accrued on March 31st of every year and on maturity. For Cumulative Fixed Deposits, the interest on the TDS amount from the date of every deduction till maturity of the Fixed Deposit is adjusted from the interest payable to the customer. Hence, the maturity value for Cumulative Fixed Deposits would vary to the extent of tax and compounding effect on tax for the period subsequent of deduction till maturity.

• For Recurring Deposits, tax is deducted on interest compounded every quarter, interest accrued on March 31^st of every year and on maturity. The interest on the TDS amount from the date of every deduction till maturity of the Deposit is adjusted from the interest payable to the customer. Hence, the maturity value for Recurring Deposit would vary to the extent of tax and compounding effect on tax for the period subsequent of deduction till maturity.

• When aggregate of interest payable in the financial year exceeds the threshold limit, TDS recoverable on the interest paid is recovered from the next interest event. This TDS recovery will be shown as “Overhead Tax” / “Tax on previous interest” in the statement. In case, the interest amount is not sufficient to recover the TDS, the same will be recovered from the principal amount of the fixed/recurring deposit.

• As per section 206AA introduced by finance (No.2) Act, 2009 w.e.f. 01.4.2010, a valid PAN is required to be submitted by every person who receives income on which tax is deductible, failing which TDS shall be deducted at the prevailing rate or 20% whichever is higher.

• In case the resident deposit holder does not want the Tax to be deducted at source, they may submit Form 15G / 15H (other than company, firm or co-operative society)/ Exemption Certificate under Section 197 (in case of all holders)/ or any other Tax Exemption Certificate with the Bank. Such form or tax exemption certificate has to be submitted post opening of the fixed / recurring deposits and at the start of every subsequent financial year for the fixed / recurring deposits held. Also, Form 15G / 15H shall not be treated as valid unless a valid PAN is mentioned in such forms.

• As Per Section 139A(5A) of IT Act, every person receiving any sum of income or amount from which tax has been deducted under the provisions of IT Act shall provide his valid PAN to the person responsible for deducting such tax. In case valid PAN is not provided as required, the bank shall not be liable for non-availing of the credit of Tax deducted at Source and non-issuance of TDS certificate.

• As per Section 139AA of the Income tax Act, 1961, it is mandatory to link Permanent Account Number (‘PAN’) with Aadhaar by June 30, 2023. If PAN is not linked, then the PAN provided by the customer will become inoperative. Failure to link will also attract TDS at prevailing rate or 20% whichever is higher, as may be applicable on the income from the Bank. Bank will be unable to refund the TDS once deducted.

FLEXI FIXED DEPOSITS / FIXED DEPOSITS WITH SWEEP FACILITY

These terms and conditions relating to Flexi Fixed Deposits, Fixed Deposits with Sweep Facility are in addition to the terms and conditions applicable to Fixed Deposits.

• Under the Sweep facility, Fixed Deposits is / are created and linked to a Savings/Current Account, as are requested for by depositors.

• Such linked Fixed Deposits are broken automatically, and the money therein is transferred back to the linked Savings/Current Account (“Sweep-in / Reverse Sweep”), to meet any shortfalls arising in the linked Account as a result of withdrawals or as a result of applicable charges from time to time.

• The threshold limits and sweep multiples for Sweep facility will be as per the linked Savings/Current account and/or scheme opted for.

• Only the principal amount of the fixed deposit/s and not any interest will be considered for Sweep-in/Reverse Sweep facility.

• If the customer/s has/have more than one deposit linked to Savings/Current account under the Sweep facility, the last Fixed Deposit opened will be used first (Last-In First-Out / LIFO method) to meet the shortfall, and so on and so forth, until the shortfall is fully met.

TAX SAVER FIXED DEPOSITS (IF APPLICABLE)

These terms and conditions relating to Tax Saver Fixed Deposit(s) are in addition to the terms and conditions applicable to Fixed Deposits.

• Only individuals and HUF – Indian residents are eligible for applying for the Deposit.

• Single holder type deposits - The single holder type deposit receipt shall be issued to an individual for himself or in the capacity of the Karta of the Hindu undivided family.

• Joint holder type deposits - The joint holder type deposit receipt may be issued jointly to two adults or jointly to an adult and a minor; provided that in the case of joint holder type deposit, the deduction from income under Section 80C of the Income Tax Act, 1961 (the "Act") shall be available only to the first holder of the deposit.

• The minimum amount of Deposit which can be placed with the Bank shall be Rs 1,000 and the maximum amount of Deposit which can be placed shall be ₹1,50,000.

• The maturity period of a Deposit receipt of any denomination shall be five years commencing from the date of the receipt.

• There shall be no auto renewal facility for the Deposit.

• No Deposit shall be encashed before the expiry of five years from the date of the deposit except in case of death of depositor.

• Permanent Account Number (PAN) is mandatory to open a Deposit.

• The Deposit shall not be pledged to secure any loan or as security to any other asset.

• In addition, the regulation Bank Term Deposit Scheme, 2006 issued by the Central Government shall also apply to the Deposit.

GREEN DEPOSITS

These terms and conditions relating to Green Deposits are in addition to the terms and conditions applicable to Fixed Deposits.

• Green Deposits are offered by the Bank for a specific tenure only.

• Green Deposits are opened with the maturity instruction set to ‘Auto Closure’ only. If the depositor wishes to change the maturity instruction, they must visit a branch well before the maturity date to submit a request.

FIXED DEPOSITS WITHOUT PREMATURE WITHDRAWAL FACILITY:

These terms and conditions relating to Fixed Deposits without premature withdrawal facility are in addition to the terms and conditions applicable to Fixed Deposits.

• The Fixed Deposit does not have premature withdrawal facility i.e. the Fixed Deposit cannot be closed by the depositor before expiry of the term of such deposit.

• However, the Bank may allow premature withdrawal of these deposits in following exceptional circumstances such as (a) in the event of any direction from any statutory and/or regulatory authority/or government order or bankruptcy or (b) deceased claim settlement cases. In the event of premature withdrawal of these deposits under these exceptional circumstances, the Bank will not pay any interest on the principal amount of the deposit. Any interest credited or paid till the date of premature closure will be recovered from the Fixed Deposit amount including TDS remitted to the income tax authorities by the Bank with respect to such deposit.

• Auto renewal facility is not available for such Fixed Deposits at time of opening of the Fixed Deposit account.

• Overdraft/Credit facilities against such Fixed Deposits will not be available. Also, such fixed deposits will not be eligible for marking of lien or for use as security / margin / collateral.

FIXED DEPOSITS WITHOUT PREMATURE WITHDRAWAL FACILITY:

These terms and conditions relating to Fixed Deposits without premature withdrawal facility are in addition to the terms and conditions applicable to Fixed Deposits.

• The Fixed Deposit does not have premature withdrawal facility i.e. the Fixed Deposit cannot be closed by the depositor before expiry of the term of such deposit.

• However, the Bank may allow premature withdrawal of these deposits in following exceptional circumstances such as (a) in the event of any direction from any statutory and/or regulatory authority/or government order or bankruptcy or (b) deceased claim settlement cases. In the event of premature withdrawal of these deposits under these exceptional circumstances, the Bank will not pay any interest on the principal amount of the deposit. Any interest credited or paid till the date of premature closure will be recovered from the Fixed Deposit amount including TDS remitted to the income tax authorities by the Bank with respect to such deposit.

• Auto renewal facility is not available for such Fixed Deposits at time of opening of the Fixed Deposit account.

• Overdraft/Credit facilities against such Fixed Deposits will not be available. Also, such fixed deposits will not be eligible for marking of lien or for use as security / margin / collateral.

RECURRING DEPOSITS

1. Recurring Deposit (RD): Recurring Deposit is a special type of term deposit which enables a depositor to save by paying into the account an agreed fixed amount monthly over a stipulated period.

2. Duration of Deposit: A Recurring Deposit can be opened for a minimum tenure of 6 months and a maximum tenure of 10 years, or for specific tenures as may be offered by the Bank from time to time.

3. Instalment amount: The amount specified as instalment, which shall be deposited recurringly by the Depositor/s into the account on the specified periods. The minimum instalment amount shall be ₹100/- and maximum instalment amount shall be ₹1,25,000/-.

4. The Instalment amount and the duration of the deposit cannot be altered post opening of the deposit.

5. Recurring Deposit can be opened with maturity instructions of Auto-closure only.

6. Payment of Interest:

• Interest on a Recurring Deposit will be calculated from the date the instalment is received.

• Interest on the Deposits is calculated at quarterly intervals, at the applicable rates and is compounded on a quarterly basis.

• Interest is calculated based on the actual number of days in a financial year. Calculation of interest is basis 365 days for the period falling in a non-leap (financial) year and 366 days for the period falling in a leap (financial) year.

• The interest amount shall be paid to the Depositor/s on maturity.

7. Payment of instalments:

• Partial payment of instalments will not be permitted.

• Grace period of 5 days to pay instalment will be available to the Depositor.

• If more than one instalment is overdue at the time of payment, the paid instalment, if sufficient to cover only that one instalment will be appropriated towards the first or earliest instalment overdue.

8. Maturity

• The deposit shall be due for repayment & shall mature on completion of the contracted tenure even if there are instalments remaining to be paid.

• The maturity value mentioned on the Recurring deposit advice is subject to the payment of all instalments on time;

• In case of any delay in payment of scheduled instalments, the maturity amount shall change due to delay in payments.

• Maturity amount mentioned on the confirmation advice shall also change in case of TDS recovery.

9. Premature Withdrawal and Penalty on Recurring Deposits:

• In case of premature withdrawal within a month for domestic/NRO RD and withdrawal within a year (365 days in a non-leap year and 366 days in a leap year) for NRE RD, no interest is payable. In case of premature withdrawal after a month for domestic/NRO RD and after a year for NRE RD the interest will be paid basis interest rate applicable for fixed deposits as on date of the deposit for the corresponding period for which the deposit has remained with the bank.

• Additionally, Premature closure penalty shall be charged on premature withdrawal after a month in case of Domestic/NRO RD and premature withdrawal after a year in case of NRE RD.

• Premature closure penalty of 1% shall be applicable on all Recurring Deposits opened after May 2^nd, 2019.

• In case of premature withdrawal within 180 days, interest will be calculated and paid on simple interest basis.

• There shall be no penalty on missing an instalment of Recurring Deposits.

10. Tax Deducted at Source (“TDS”)

• Tax is deducted at source on interest on Fixed Deposits and Recurring Deposits held by the resident if the interest paid or credited or likely to be paid or credited by the Bank for the financial year exceeds the threshold limit specified under Section 194A of Income Tax Act, 1961, i.e. interest on projected basis in a financial year. Currently, the threshold limit for this purpose is Rs. 50,000/- for non-senior citizens and Rs. 1,00,000/- for senior citizens in a financial year.

• In case of non-resident Fixed Deposit and Recurring Deposit holders, tax shall be deducted at source as per the provisions of Section 195 of Income Tax Act, 1961.

• The tax deducted at source is remitted to the tax authorities on behalf of the customer by the Bank as per the prescribed timelines provided by Income Tax Act, 1961.

• For Recurring Deposits, tax is deducted on interest compounded every quarter, interest accrued on March 31st of every year and on maturity. The interest on the TDS amount from the date of every deduction till maturity of the Deposit is adjusted from the interest payable to the customer. Hence, the maturity value for Recurring Deposit would vary to the extent of tax and compounding effect on tax for the period subsequent of deduction till maturity.

• When aggregate of interest payable in the financial year exceeds the threshold limit, TDS recoverable on the interest paid is recovered from the next interest event. This TDS recovery will be shown as “Overhead Tax” / “Tax on previous interest” in the statement. In case, the interest amount is not sufficient to recover the TDS, the same will be recovered from the principal amount of the fixed/recurring deposit.

OTHER TERMS (FOR FD AND RD)

• The customers agree that in case of a joint account (savings/current) having mode of operation as either or survivor / anyone or survivor, anyone of them, as the account holders; may create a Deposit by placing a request through branches, internet banking or mobile banking, as such channels may be made available by the Bank from time to time and subject to such terms and conditions as may be specified by the Bank from time to time. The Customers agree that such a Deposit shall be created in the name of all the account holders with mode of operation as either or survivor / anyone or survivor. The Customer(s) shall not raise any dispute / claim against the Bank for creating a Deposit in the manner specified above and shall keep the Bank indemnified against any loss / harm suffered by the Bank with respect to any dispute / claim raised by anyone of the account holder or any third party.

• For accounts with Method of Operation “Either or Survivor” & Former & survivor, the depositors agree that premature withdrawals of all Term Deposits (Fixed Deposits and Recurring Deposits) placed and/or proposed to be placed under the operation rule of “Either or Survivor” & “Former of Survivor” shall be paid by IDFC FIRST Bank to the surviving joint depositor on the death of the other.

• The depositors agree that the pre-mature withdrawal of Term Deposit(s) (Fixed Deposits and Recurring Deposits) can be done by either or survivor OR anyone or survivor as per the mode of operation. The depositors agree to have opted for and the Bank is entitled to honour the same. The depositors affirm that the payment of proceeds of such deposits to anyone of the depositors represents a valid discharge of the Bank's liability and in case of disagreement or dispute arising among the holders, the Bank will not be held responsible in discharging its liability.

• At the discretion of the Bank, overdraft/loan against the Fixed Deposit may be given to the depositors, in whose name the deposit has been opened and who are authorised to withdraw the deposit, as per original mandate.

• The benefit of additional interest rate on deposits on account of being bank’s own staff or senior citizens will not be available to NRE and NRO deposits.

• In addition to the above points, the guidelines issued by the Reserve Bank of India from time to time in respect of fixed deposits and recurring deposits shall also apply.

• Interest rates are subject to change without prior notice.

• As interest rates are subject to change without prior notice, depositor shall ascertain the rates on the value date of Fixed Deposit/Recurring Deposit.

• Submission of PAN or Form 60 is mandatory for an individual deposit exceeding ₹50,000/- and aggregate value of all Fixed Deposits and Recurring Deposits opened in the same UCIC in a financial year exceeds ₹5,00,000/-.

• In absence of PAN, Fixed Deposit will be opened with maturity instructions of Auto-closure only.

• For Staff deposits with Joint account holders: I hereby declare that the monies deposited, or which may be deposited from time to time into my deposit accounts held with the Bank belong to me.

NOMINATION

• The Bank actively recommends that all Customers avail nomination facility. The nominee, in the event of death of the Customer/s, would receive the proceeds of the Deposit. Nomination facility is intended only for Deposits held by individuals.

• The single holder or the joint holders of the Deposit may, by filing in necessary particulars in the prescribed form at the time of making the Deposit, nominate any person who, in the event of death of the single or both the joint holders as the case may be shall become entitled to the Deposit and the payment thereon.

• If such nomination is not made at the time of making the Deposit, it may be made by the single holder, the joint holders or the surviving joint holder, as the case may be, at any time after the Deposit receipt is issued but before its maturity, by means of an application in the prescribed form to the officer in charge of the Bank.

• In the event of death of the Deposit holder in respect of which a nomination is in force, the nominee shall be entitled at any time before or after the maturity of the Deposit to encash the Deposit. For the aforesaid purpose, the nominee shall make an application to the branch manager of the Bank, supported by proof of death of the Deposit holder.

• If a Deposit holder dies and there is no nomination in force at the time of his / her death, the Bank shall pay the sum due to the deceased, to his / her legal heirs.

INSURANCE COVER FOR DEPOSITS

Each depositor is insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to a maximum of ₹5 lakh or as updated from time to time, for both principal and interest amount held by him in the same right and same capacity.