Scheme features & terms
A special type of recurring deposit implemented for a group of members willing to join a particular group.
Members willing to be included in a group have to submit an application for the same.
Deposits are collected in fixed instalments for a specified period of 1 or 2 years, either weekly or monthly.
Collections are made through collectors who issue receipts and make entries in the passbook provided to each depositor.
At the end of each week or month, lots are drawn among the members of the group, and the member who gets the lot is paid the amount of the deposit that would accrue at the end of the period.
The security for such advance payment is the deposit account and the personal sureties of the depositor and another depositor in the group.
Subsequent lots are drawn excluding members in whose favour lots have already been taken.
Lots are taken in the presence of the available depositors of the group.
The collections under the first instalment are taken by the Society towards service charges; hence each depositor pays one instalment more.
All other formalities and precautions of ordinary recurring deposits apply here too.