The scheme is designed to help the depositors to encash the certificate after lock in period of two year at the pre-determined maturity value which increases half yearly basis. The depositor will get the interest on such deposits in a cumulative compounded manner on a quarterly basis. The Deposits are known as Kalyana Nidhi Cash Certificate with a fixed period of five years.
Who can purchase the cash certificates:
Any individual in his name.
Two or more individual in their joint names with suitable repayment clause.
The guardian in the name of minor.
A guardian jointly with a minor.
Mode of opening an account:
An account can be opened with a minimum of Rs. 100/- and in multiples of Rs.10/-. The face value of the certifcates are Rs. 1,000,Rs. 100,Rs.50, Rs.10 and the number of certificates issued is according to the amount of the deposit made. The date of maturity will be recorded on the certificates itself. The maturity value is mentioned on the reverse of the certifcate.
Interest is paid on the rates as applicable for the period of deposits as prescribed by the R.B.I / Bank. Interest is compounded at quarterly intervals.
If a depositor/s so desires can encash all certificates or one or few certificates as needed by depositor at any time after completion of one year from the date of deposit. In such case the amount payable on the date of with will be as recorded on the back of the certificate. The maturity value in such cases is according to the number of completed half years at the rate applicable for the deposit with out penal clause. However, if the certificates are encashed before completion of two year from the date of issue no interest will be payable.
Loan against the deposit:
The bank may at its discretion, may grant loans on the security of these certificates as per the existing policy, but interest on the loans will be to be paid quarterly.
The depositor/s can avail the nomination facility by making necessary application and it can be noted in the records of the Bank.