Recurring deposits are collected for various period, ranging from 1 to 5 years in weekly or monthly installments by multiples of Rs 10/-.
Members are to be enrolled in recurring deposits on the basis of prescribed applications. They will be issued passbooks allowing separate folios in the Recurring Deposits ledger.
The deposits installments will be collected from the enrolled members by the deposit collecting staff visiting them. Simultaneously they will be issued receipts after entering the remittances in the passbooks with the members.
After the balance in the deposit A/C reaches 50% or more, the depositor can be allowed advance up to double the balance in his recurring deposit account, subject to the condition that the total deposit shall be security for the advances, besides the personal surety of the depositor.
When advances are allowed necessary entries shall be made in the passbook of the depositor as well as in the ledger folio of the depositor. The period of advance shall not exceed the maturity period of the deposit and the advances shall be collected in installments.
The installments of the advance will be collected along with the deposit installments.
On maturity, the balance in the deposit account will be paid to the depositor after adjusting the advance amount if any on surrendering the passbook by the depositor.