GB Long Term Deposits:

The features of ‘GB Long Term Deposits’ are as under

• Title of the Scheme - ‘GB Long Term Deposits’.
• Type of Depositors - Individuals, firms, corporate entities, Regd. Societies, Body of Individuals HUFs, Trusts etc, can make investment in GB Long Term Deposits. Other commercial banks can invest in these deposits as part of their non-SLR portfolio. Non-members and also those residing outside the area of operation of the Bank can also invest in GB Long Term Deposits.
• Issue Price - Minimum deposit of Rs. 1 lakh (minimum).
• Amount of Deposit- The minimum limit for investment will be of Rs. 1 lakh, Additional deposit will be accepted in multiples of Rs. 1 lakh & maximum Rs. 1 cr per depositor.
• Nature of Deposit -GB Long Term Deposits will be subordinated to the claims of depositors and other creditors but would rank senior to the claims of shareholders, including holders of preference shares (both Tier I & Tier II). Among investors of instruments included in lower Tier II, the claims shall rank pari passu with each other. No Voting rights will be available to GB Long Term Depositors.
• Tenor -Tenure will be of 10 years.
• Put Option / Step up Option -NIL.
• Call Option -A call option on these deposits is available at any time after 5 years for the amounts to be decided by the Bank   with the prior permission of RBI.
• Interest Rate -The deposits will carry fixed rate of interest @12% p.a.
• Interest Payment -Half Yearly interest payment.
• Procedure -Depositor can open the said account by filling an account opening form at any branch of our Bank. Branch should obtain the necessary documents as required to fulfill KYC norms. Branches are advised to collect the forms duly filled in alongwith the all the necessary documents to fulfill the KYC norms & may send it alongwith necessary instructions to the Corporate Office for opening the accounts as the accounts under ‘GB Long Term Deposits’ scheme will be opened centrally at Corporate Office. The deposit receipt (certificate) will also be issued from Corporate Office. The branches are advised to use the existing account opening form for ‘GB Long Term Deposits’ scheme. The branches are also advised to obtain ‘Terms & Conditions Slip’ duly signed by the depositors.
• Redemption -Prior permission from RBI will be required for redemption.
• O/D, Loan Facility- Overdraft / Loan against GB Long Term Deposits facility / premature closure not permitted.
• Nomination- Nomination facility is available for the said deposit scheme.
• Scheme Validity -GB Long Term Deposits can be made available on tap at the discretion of the bank.
• Conversion of existing deposits -Existing Deposit holders of the Bank can invest proceeds of their term deposits to GB Long Term Deposits without penalty for premature closure.
• DICGC Cover -‘GB Long Term Deposits’ will not be eligible for DICGC cover.
• Deposit Receipt -Attractive Deposit Receipt will be issued.