To reduce its financial dependance on NABARD, the Bank has introduced a Deposit Mobilisation Scheme in accordance with the revised guidelines issued by RBI/NABARD and with the approval of Registrar, Cooperative Societies, Punjab.

The Bank has introduced two Deposit Mobilisation Schemes:-

- Term Deposits
- Recurring Deposits

PADBs act as agents for the Deposit Mobilisation schemes offered at SADB. Acceptance of cash is done at PADB and SADB. PADB forwards the deposits details to the Head Office.

**FIXED DEPOSITS**

Term Deposit is a deposit which is received by the Bank for a fixed period and can be withdrawn any time. A minimum amount of Rs. 5000/- is required to book a Fixed Deposit. The minimum period for which a fixed deposit can be booked is one year and maximum is upto 5 years.

The Bank accepts cash Rs. 50000/- a day for term deposit. The rate of Interest for senior citizens is increased by 0.5% on a single Fixed Deposit Receipt of Rs. 5000/-and above for one year and above. The rate of interest is increased by 1% for the employees of the Bank. The interest is compounded quarterly.

Customers can apply for loans against their Fixed Deposits. An additional 2% Rate of Interest will be charged on the Respective Fixed Deposit interest Rate. The maximum amount of loan that can be applied against a Fixed Deposit should be less than or equal to to 75% of Deposit Amount.

**RECURRING DEPOSITS**

A fixed sum of Rs. 100 or multiples thereof has to be deposited every month for a predetermined period.Deposits are accepted by way of cash or by a locally payable cheque. The Number of installments for which a depositor can opt is : 12,18,24,30,36,60 months.The Rate of Interest for the Recurring Deposit is same as for Fixed Deposit.The interest is compounded quarterly.

The Rate of Interest slabs both for Fixed as well as Recurring Deposits as fixed by SADB are as under:-

S. No. | Category of Public | Rate of Interest (%) | ||
---|---|---|---|---|

For 1 year upto 2 years | Above 2 years upto 3 years | Above 3 years | ||

1 | For normal public | 7.10% | 6.60% | 6.35% |

2 | For senior citizens | 7.60% | 7.10% | 6.85% |

3 | For employees/ ex-employees of the bank | 7.85% | 7.35% | 7.10% |

4 | For those who are senior citizens as well as employees/ ex-employees of the bank | 7.85% | 7.35% | 7.10% |

Premature payment of Deposits may be made if the depositor desires and the interest will be paid @1% less than the interest rate payable on the Fixed Deposits/Recurring Deposits for more than one year . However, the rate of interest on premature withdrawals which are less than one year will be applicable as under:-

Period | Rate of Interest (%) | |
---|---|---|

1 | 7 Days to 14 Days | 4.00% |

2 | 15 Days to 45 Days | 5.00% |

3 | 46 Days to 90 Days | 5.75% |

4 | 91 Days to 179 Days | 6.50% |

5 | 180 Days to less than 1 Year | 6.50% |