Paytm Payments Bank || Policy || Comprehensive Deposit Policy for Paytm Payments Bank

Comprehensive Deposit Policy

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Effective date: 4th Sep, 2023

Introduction and Objectives
This policy outlines the guiding principles in respect of deposit products offered by the Bank. While adopting this policy, the Bank reiterates its commitments to customers outlined in Bankers' Fair Practice Code of Indian Banks' Association and applicable regulatory requirements. The bank will be transparent in providing services and will address grievances/concerns of customers using technology and wide network of physical touch points using banking correspondents and branches.
Types of Deposit Accounts Offered to Customers & Product Features
While various deposit products offered by the Bank are assigned different names. The deposit products can be categorised broadly into the following types. Definition of major deposits schemes is as under :-
- Demand deposits means a deposit received by the Bank which is withdrawable on demand;
- Savings deposits means a form of demand deposit which is subject to restrictions as to the number of withdrawals as also the amounts of withdrawals permitted by the Bank during any specified period;
- Current Account” means a form of demand deposit wherefrom withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount and will also include other deposit accounts which are neither Savings Deposit nor Term Deposit;
- Account Opening and Operation of Deposit Accounts
- The Bank before opening any deposit account, shall carry out due diligence as required under Know Your Customer (KYC) guidelines issued by RBI and/ or such other norms or procedures as per the policies of the Bank. If the decision to open an account of a prospective depositor requires clearance at a higher level, reasons for any delay in opening of the account shall be informed to him / her and the final decision of the Bank shall be conveyed at the earliest.
- The bank is committed to providing basic banking services to disadvantaged sections of the society.
- The account opening forms and other related materials shall be provided to the prospective depositor by the Bank with step by step guide in digital channels and physical forms where relevant The same shall contain details of information to be furnished and documents to be produced for verification and / or for record The Bank for opening the account will explain the procedural formalities and provide necessary clarification sought by the prospective depositor when he / she approaches for opening a deposit account.
- The regulatory guidelines require bank to categorize customers based on risk perception and prepare profiles of customers for the purpose of transaction monitoring. Inability or unwillingness of a prospective customer to provide necessary information/details will result in the bank not opening an account.
- Inability of an existing customer to furnish details required by the bank to fulfil statutory obligations subsequently will result in closure of the account after due notice(s) to the customer.
- For Saving Bank Account the Bank may also place restrictions on number of transactions, cash withdrawals, etc., for given period. Similarly, the bank may specify charges for issue of cheque books, additional statement of accounts, duplicate passbook etc. All such details, regarding terms and conditions for operation of the account and schedule of charges for various services provided will be communicated to the prospective depositor while opening the account.
- Savings Bank Accounts can be opened for eligible person/persons and certain organizations/agencies (as advised by Reserve Bank of India from time to time)
- Current accounts can be opened by individuals / partnership firms / private and public limited companies / specified associates / societies, departments of authority created by the government (central or state), limited liability partnership, etc.
- The due diligence process, while opening a deposit account shall involve satisfactory verification of the identity of the person, and his/her address, signature and occupation in case the account is opened using a physical account opening form. Obtaining recent photograph of the person/s opening / operating the account may be part of the due diligence process.
- In addition to the due diligence requirements, under KYC norms the Bank is required by law to obtain Permanent Account Number (PAN) or alternatively declaration in Form No. 60 or 61 as specified under the Income Tax Act / Rules. Bank will ensure that Due diligence of the customer shall not result in denial of banking/financial facility to members of the general public, especially those, who are financially or socially disadvantaged.
- Deposit accounts can be opened by an individual in his own name (status: known as account in single name). Savings Bank Account can also be opened by a minor jointly with natural guardian or with mother as the guardian (Status: known as Minor’s Account). Minors above the age of 10 will also be allowed to open and operate saving bank account independently. However, no overdrafts will be granted to these minors. SB account can also be opened by a minor represented by guardian or jointly with a major, where minor is represented by natural guardian. Minors above the age of 10 will also be allowed to open and operate SB account subjectto restrictions on transactions and no cheque books will be provided to such accounts.
- Nomination facility is available on all deposit account opened by individuals. Nomination is also available to an account opened by a a sole proprietor. . Nomination can be made in favour of one individual only. Nomination so made can be cancelled or changed by the account holder/s any time.. Nomination can be modified by the consent of account holder/s. Nomination can be made in favour of a minor also.
- Bank recommends that all depositors avail nomination facility. The nominee, in the event of death of the depositor/s, would receive the balance outstanding in the account as a trustee of legal heirs. The depositor will be informed of the advantages of the nomination facility while opening a deposit account.
- The Bank will offer sweep facilities in savings and current accounts based on threshold definitions, for bank accounts, term/ fixed deposits, mutual funds and bank accounts partnership with other financial institutions.
- Soft copy of statement through digital medium may be provided on an 'on request' basis without any cost
- Physical statement within branch premises will be provided subject to charges as per Schedule of Charges.
Interest Payments
- The Bank will pay interest on savings account at the rates as decided by the Bank from time to time.
- The Bank will provide a simple interest rate calculated on a daily basis (using the number of calendar days in the year) and paid out monthly. Please note that this offering is subject to changes at the Bank's discretion
- The rate of interest on deposits will be prominently displayed in the branch premises/ web site of the Bank. Changes, if any, with regard to the deposit schemes and other related services shall also be communicated upfront and shall be prominently displayed.
Minor's Accounts
- The minor can open Savings Bank Account and the same can be operated by the natural guardian or by minor himself / herself, if he/she is above the age of 10 years. The account can also be opened jointly.
- No current account can be opened by a minor
- Bank is free to offer additional banking facilities like internet banking, ATM/ debit card etc.
- On attaining majority, the erstwhile minor should confirm the balance in his/her account and if the account is operated by the natural guardian / guardian, fresh specimen signature of erstwhile minor duly verified by the natural guardian would be obtained and kept on record for all operational purposes.
Basic Savings Bank Deposit Account (BSBDA)
- The Bank offers the 'Basic Savings Bank Deposit Account', which has been considered as a normal banking service available to all.
- This account shall not have the requirement of any minimum balance.
- The services available in the account will include deposit and withdrawal at bank branch/BC points as well as ATMs ; receipt / credit of money through electronic payment channels or by means of deposit / collection of cheques drawn by Central / State Government agencies and departments, as decided by the Bank from time to time.
- The 'Basic Savings Bank Deposit Account' would be subject to regulator’s and Bank’s laid down guidelines on KYC for opening of accounts issued from time to time.
- Holders of 'Basic Savings Bank Deposit Account' will not be eligible for opening any other savings bank deposit account in the Bank. If a customer has any other existing savings account in the Bank, he / she will be required to close it within 30 days from the date of opening a 'Basic Savings Bank Deposit Account'. Additionally, the customer(s) will have to expressly declare, before opening a Basic Savings Bank Deposit account, that he / she is not having a Basic Savings Bank Deposit account in any other bank.
- Basic Savings Bank Deposit Account will have no limit on number and value of deposits that can be made in a month.
- Value added services and facilities beyond basic minimum requirement prescribed to be offered free of charge, will attract a levy of charges (in non- discriminatory manner) as specified by the Bank from time to time.
- The following basic minimum facilities in the BSBD Account, will be free of charge, without any requirement of minimum balance
  - a. The deposits at bank branch/BC points as well as ATMs/CDM’s
  - b. Receipt/ credit of money through any electronic channel or by means of deposit / collection of cheques drawn by Central / State Government agencies and departments.
  - c. Minimum of four withdrawals in a month, including ATM withdrawals.
  - d. Debit Card.
- Detailed information on Fee & Charges (wherever applicable for eg. Withdrawal beyond 4 free transaction in a month, Penal Charges of Cheque / ECS NACH return etc.) will be hosted on the Bank's Website for customer’s reference.
Senior Citizen Accounts
- Customers with age>=60 are automatically offered Sr. citizen savings account
- For the existing customers the individual savings accounts will be converted to sr. citizen savings account automatically once they attain the age of 60.
Customer Confidentiality
The customer information collected from the customers shall not be used for cross selling of services or products by the Bank, their subsidiaries and affiliates. If the Bank proposes to use such information, it should be strictly with the consent of the accountholder
Secrecy of customer’s accounts
The Bank shall not disclose details / particulars of the customer’s account to a third person or party without the expressed or implied consent from the customer. However, there are some exceptions, viz. disclosure of information under compulsion of law, where there is a duty to public to disclose and where interest of the Bank requires disclosure.
Deceased Depositors and settlements
The bank will ensure quick and efficient settlement of funds irrespective the account has specified a nominee or not
1. Settlement
  1. Deposit accounts with nominee clause
  2. Deposit accounts without the nominee clause
  3. Treatment of flows in the name of the deceased depositor
  4. Time limit for settlement of claims
Service Charges
- The Bank provides various products and services to customers for which service charges are levied. They can be viewed here: https://www.paytmbank.com/ratesCharges.html
- These charges are reviewed/revised as decided by the Bank from time to time
- The list of service charges is displayed in the branches and may also be made available on request
Insurance Cover for Deposits
All bank deposits are covered under the insurance scheme offered by Deposit Insurance and Credit Guarantee Corporation of India (DICGC) subject to certain limits and conditions. The details of the insurance cover in force, will be made available to the depositor. Under the said scheme the insurance will be available on the amount in the account and not the wallet
Web: https://www.dicgc.org.in
Stop Payment Facility for Cheque
The Bank will accept stop payment instruction from the depositors in respect of cheques issued by them. The depositor is allowed to select the cheque number on the application for which the Stop Payment request is to be initiated, Upon receiving the request the cheque number is flagged at CBS thereby negating any approvals provided for it. Charges, as specified, will be recovered
NACH Cancellation Facility
The user initiates the cancellation request via the corporate which transfers the request to Sponsor Bank and the cancellation request is further sent to NPCI. On successful cancellation, the user is notified by the destination Bank about the mandate cancellation, and sponsor bank then notifies the corporate about the successful cancellation.
Dormant / Inoperative Accounts
- A Savings as well as Current account, which do not have customer induced transaction for a period of 24 months, would be treated as an inoperative account.
- The depositor can request the Bank to activate the account by submitting a request form to the Bank wherein the customer is expected to submit the reasons for not operating the account along with the documents for proof of identity and address.
Unclaimed Deposits
Unclaimed deposit accounts mean accounts, which have not been operated upon the last ten years.
Account Closure
- The customer may raise a request to close his/her account at any time by visiting our nearest branch or our Noida Branch (Address - Skymark One , Shop No.1, Ground Floor , Tower- D , Plot No. H - 10B, Sector 98 , Noida , UP - 201301) or our Customer Care Service Centre, the details of which are listed under the section - "Contact Us" of PPBL’s website.
- The Bank may close the account of the customer within 3 working days (post redemption of partner products) of receiving instructions, subject to the customer completing all formalities and submitting all required documents
- The Bank may close/freeze the customer account Suo-Moto, where necessary, in line with the KYC/AML Policy of the Bank
- Bank shall close customer’s account post deducting all fees and/or charges payable in respect thereof. On closure of customer’s account the card (Debit / ATM) and other deliverables/services in relation with Savings / Current Account shall stand automatically terminated.
Bank Rights & obligations
The bank may:
- Subject dormant/inactive bank accounts to enhanced monitoring and place business rules, which may be updated from time to time, on activity from these accounts
- Block or restrict the transactions in dormant/inoperative bank accounts on channels such as mobile banking, internet banking and ATM.
- Credit the interest on savings bank accounts on regular basis whether the account is operative or not
- Display the list of unclaimed deposits/inoperative accounts which are inoperative for ten years or more on its website
Redressal of complaints and grievances
Depositors who have any complaints or grievances regarding the services provided by the Bank have the right to approach the designated authorities responsible for handling customers' complaints/grievances.
The Bank has a well-defined Customers' Grievance Redressal Policy in place to assist depositors. If depositors are not satisfied with the Bank's services, they can approach the nodal officer for the resolution of their complaints. Details of the nodal officers are displayed at the branch and are also available on the bank's website. The branch officials will provide all the necessary information regarding the procedure for lodging a complaint. If the depositor does not receive a response from the Bank within 30 days from the date of the complaint or is not satisfied with the response received, they have the right to escalate the matter to the Banking Ombudsman appointed by the Reserve Bank of India."
In this improvement, I have restructured the sentences and improved clarity by using simpler language and breaking the paragraph into smaller sentences. This makes it easier for the reader to understand the process and their rights in case of any grievances.
Opening of Current Accounts for borrowers not availing Cash Credit/ Overdraft Facilities from Banking System:
The Reserve Bank of India has reviewed and revised instructions on "Opening of Current Account by Banks - Need for Discipline" vide its circulars:
- DO.No.BP.BC/7/21.04.048/2020-21 dated August 6,2020,
- DO.NO.BP.BC.27/21.04.048/2020-21 daled November 2. 2020,
- DO.No.BP.BC.30 21.04.048/ 2020-21 dated December 14, 2020,
- DOR.CRE.REC.35/21.04.048/2021-22 dated August 4, 2021 and
- DOR.CRE.REC.63/21.04.048/2021-22 dated October 29, 2021 wherin Bank were advised to have their own Board approved policy for opening current accounts of prospective customers who have not availed any credit facilities from the banking system.
- The following due diligence process is followed by the Bank while opening the account of a customer who has/has not availed any credit facility from the banking system.
- All the existing guidelines (i.e. KYC/Multiple opening of current account/ due diligence process etc.) with regards to opening of current account is followed.
- Bank will mandatorily obtain declaration from customer about any credit facility with any in the banking sector.
- CRILC checks will be performed by operations team to verify the correctness of the declaration submitted by the customer.
- The limits to be considered is total sanctioned exposure from Schedule Commercial Banks (SCBs), irrespective of underline security/collateral/cash cover.
Policy Review and Updation
This Board approved policy will be reviewed as and when required or on an annual basis for incorporating changes related to handling BCs and/or regulatory updates, if any.
Regulatory References
- RBI Master Direction - Interest Rate on Deposits
- RBI Master Circular on Interest Rates on Domestic, NRO and NRE Accounts dated July 1, 2015
- RBI Master Circular on Customer Service in Banks dated July 1, 2015
- RBI Guidelines on Payment Banks dated November 27, 2014
- RBI Operating Guidelines for Payments Banks dated October 6, 2016
- IBA Model Deposit Policy
- IBA Model Customer Rights Policy
- IBA Code of Banking Practice
- Opening of Current Account by Banks - Need for Discipline" vide its circulars dated:
  - DO.No.BP .BC/7/21.04.048/2020-21 dated August 6,2020.
  - DO.NO.BP .BC.27/21.04.048/2020-21 daled November 2.
  - DO.No.BP.BC.30 21.04.048/ 2020-21 dated December 14, 2020,
  - DOR.CRE.REC.35/21.04.048/2021-22 dated August 4, 2021,
  - DOR.CRE.REC.63/21.04.048/2021-22 dated October 29, 2021