CIRCULAR : 382/2018

INDEX : DEP-6
DEVELOPMENT SECTION DATE : 03.08.2018
STRATEGIC PLANNING & DEVELOPMENT WING ADTE
HEAD OFFICE, BANGALORE – 560 002

SUB: REVISION IN INTEREST RATES ON DOMESTIC & NRO TERM DEPOSITS W.E.F. 04.08.2018
Synopsis
 Revision in interest rate on Domestic and NRO Term Deposits w.e.f. 04.08.2018
 All other terms and conditions detailed in HO Circular 289/2018 dated 25.05.2018 shall
continue.
 Interest rate for bulk deposits of Rs. 10 crore & above is to be obtained from Integrated
Treasury Wing, Mumbai

We had vide our Circular No. 289/2018 dated 25.05.2018 advised the revision in rate of interest on
Domestic/NRO Term Deposits w.e.f. 28.05.2018.
The Bank has now decided to revise the interest rates in respect of Domestic /NRO term deposits
w.e.f. 04.08.2018.
The revised rates of interest for various maturities are as under :
Less than Rs.1 crore Rs.1 Crore to less than
Rs. 10 Crore #
PERIOD OF DEPOSIT
Gen Non Callable
Public Sr Citizen Callable ++
7 days to 14 days * 5.75 6.25 5.30 NA
15 days to 30 days 5.75 6.25 5.30 NA
31 days to 45 days 5.75 6.25 5.30 NA
46 days to 60 days 6.25 6.75 6.30 6.35
61 days to 90 days 6.25 6.75 6.75 6.80
91 days to 120 days 6.25 6.75 6.75 6.80
121 days to 179 days 6.25 6.75 6.75 6.80
180 days to 269 days 6.35 6.85 6.75 6.80
270 days to less than 1 year 6.40 6.90 6.35 6.40
1 year only 6.70 7.20 6.50 6.55
Above 1 year to less than 2 years 7.00 7.50 6.25 6.30
2 years & above to less than 3 years 6.70 7.20 6.25 6.30
3 years & above to less than 5 years 6.20 6.70 4.90 4.95
5 years & above to less than 8 years 6.20 6.70 4.90 No Quote@
8 years & above to 10 years 6.20 6.70 4.90 No Quote@
**444 days (Canara Shikhar Deposit) 7.05 7.55 -NA- -NA-
**555 days (Canara Shikhar Deposit) 7.10 7.60 -NA- -NA-
# Interest rate for bulk deposits of Rs. 10 crore & above is to be obtained from Integrated Treasury
Wing, Mumbai.
*Rates are applicable only for single deposit of Rs.5 lakh & above. Minimum period for renewal of
domestic/NRO term deposits is 7 days irrespective of the size of deposit.
++ Non callable term deposits are Bulk deposits where PREMATURE WITHDRAWAL IS NOT
PERMITTED.
@ Bank is not accepting Bulk term deposits under Non callable segment for maturities of 5 years
and above.
For domestic term deposits of Senior Citizens (including RD), Bank is offering additional ROI of 0.50%
in all maturity and amount slabs.
Senior Citizens are not eligible for additional interest rate on NRO term deposits and Deposits
accepted under Capital Gains Accounts Scheme,1988.
**Interest rates for maturity period of 444 and 555 days under “CANARA SHIKHAR” deposits are
7.05% and 7.10% respectively.
For interest rates on Canara Tax Saver deposits, branches are advised to refer to H.O.
CircularNo.384/2018 dated 03.08.2018.
 -: 2 :-
1. For single domestic term deposit of Rs.1 crore and above to less than Rs.10 crore, branches
are instructed to take up with Development Section, SP&D Wing, Head Office through MIPD &
PP Section of respective Circle Office for obtaining permission to accept the deposits.

2. For single domestic term deposit of Rs.10 crore and above, branches are instructed to take up
with T & I Division, Integrated Treasury Wing, Mumbai, H.O through MIPD & PP Section of
respective Circle office for obtaining permission to accept the deposits.

3. The revised interest rates are applicable to fresh term deposits under DOMESTIC, NRO &
CAPITAL GAINS ACCOUNT SCHEME, 1988 accepted/renewed on or after 04.08.2018.

4. For Non Callable deposits ( where PREMATURE WITHDRAWAL IS NOT PERMITTED ) of

Rs. 1 Crore and above to less than Rs. 10.00 Crore (other than individuals and HUF) and period
46 days and above an additional interest rate over and above the rate offered for General
public is being extended from 11.02.2015. The branch accepting the Non Callable term deposit
should invariably affix a Rubber stamp/superscribe that “PREMATURE WITHDRAWAL IS NOT
PERMITTED” on the Deposit Receipt. Loan/OD against Non Callable deposits are permitted
as per the Policy of the Bank.

5. For Senior Citizens additional 0.50% will be paid for domestic term deposits (including RD)
uniformly across all maturities (except for term deposits under NRO and Capital Gains Deposit
scheme), irrespective of the size of the deposit, over and above the rate offered for General
public. This additional interest rate shall be extended only on the date of opening the term
deposit and not during the pendency of the term deposit (The depositor should be a Senior
Citizen on the date of opening the term deposit).

6. For Employees / Ex-employees and other categories of depositors who are eligible for
preferential interest rate (as detailed vide Circular No.15/2009 dated 16.01.2009), additional
1.00% over and above the rate applicable for General public is to be extended (except for
term deposits under NRO and Capital Gains Deposit scheme), irrespective of the size of the
deposit.

7. For Ex-employee Senior Citizens (60 years and above) additional 1.50% over and above the rate
offered for General public is to be extended for all deposit periods (except for term deposits
under NRO, and Capital Gains Deposit scheme), irrespective of the size of the deposit.
However, under Canara Tax Saver Scheme, the additional interest rate offered to Ex-
employee Senior Citizens over and above the rate offered for General Public is 1% only.

8. In the case of a Domestic/NRO term deposit standing in the name of a HUF, the additional
interest rate eligible for a Senior Citizen term deposit cannot be extended on the basis that
the Karta of the HUF is a Senior citizen, as the beneficial owner of the deposit is the HUF and
not the Karta in his individual capacity.

9. NRO Term Deposits: Senior Citizens are not eligible for additional interest rate for their NRO
term deposits. Employees/Ex-employees/Ex-employee Senior citizens are also not eligible for
additional interest rate for their NRO term deposits (vide H.O. Circular No.223/2012
dt.23.07.2012).

10. Capital Gains Account Scheme: No higher/preferential/additional rate of interest is to be

extended for deposits accepted under Capital Gains Accounts Scheme, for all categories of
depositors (including deposits of Senior Citizen/Staff/Ex-staff).

11. Recurring Deposits: The revised interest rates are applicable to Recurring Deposits also.
Employees/Ex-Employees are eligible for preferential rate of 1% over and above the rate
offered for General Public on their Recurring Deposits. Ex-employee-Senior Citizens are
eligible for additional rate of 1.50% over and above the rate offered for General public on
their Recurring Deposits. Senior Citizens are eligible for additional rate of 0.50% over and
above the rate offered for General public on their Recurring Deposits.

12. A penalty of 1.00% shall be levied for premature closure/part withdrawal/premature extension
of Domestic/NRO term deposits of less than Rs.1 crore that are accepted /renewed on or after
04.02.2011.
 The relevant clause out of the following should invariably be mentioned in the Deposit
receipt either manually or by affixing a rubber stamp:
“For premature closure/part withdrawal/premature extension of Domestic/NRO term deposits,
the Bank imposes a penalty of 1.00%. Such prematurely closed/part withdrawn/prematurely
extended deposits will earn interest at 1.00% below the rate as applicable for the relevant
amount slab as ruling on the date of deposit and as applicable for the period run OR 1.00% below
the rate at which the deposit has been accepted, whichever is lower.” However, no interest will
be payable on term deposits prematurely closed/prematurely extended before completion of
7th day.

13. A penalty of 1.00% is waived in case of premature closure/part withdrawal/ premature extension
of Domestic/NRO CALLABLE term deposit of Rs.1 crore & above that are accepted/renewed on
or after 13.10.2012. Such prematurely closed/part withdrawn/prematurely extended deposits
will earn interest at the rate as applicable for the amount slab of Rs.1 crore & above as ruling on
the date of deposit and as applicable for the period run OR the rate at which the deposit has
been accepted, whichever is lower. However, a penalty of 1.00% shall be levied for premature
closure/part withdrawal/premature extension of Domestic/NRO term deposits of Rs.1 crore &
above that are accepted /renewed from 04.02.2011 to 12.10.2012. Further, no interest will
be payable on term deposits prematurely closed/prematurely extended before completion of
7th day. A penalty of 1.00% is applicable on Term Deposits under Capital Gains Account
Scheme-1988, which are prematurely converted/withdrawn/closed, irrespective of the size
of the deposit amount.

14. No penalty is applicable for premature closure/part withdrawal/ premature extension of

Domestic and NRO term deposits of Employees/Ex-employees and other category of depositors
eligible for preferential interest rate (as detailed vide HO Circular No.15/2009 dated
16.01.2009) for their Domestic and NRO term deposits accepted /renewed on or after
08.09.2011.

15. A penalty of 1.00% is waived in case of premature closure/part withdrawal of Canaraflexi

Deposits (Sweep in/ Sweep out facility) which are prematurely closed/part withdrawn on or
after 01.05.2012 (vide H.O. Circular No.127/2012 dt.27.04.2012). Such prematurely closed/part
withdrawn deposits will earn interest at the rate as applicable for the relevant amount slab as
ruling on the date of deposit and as applicable for the period run OR the rate at which the
deposit has been accepted, whichever is lower.

16. A penalty of 1.00% is waived in case of NRO term deposits that are prematurely withdrawn for
the purpose of reinvestment in the Bank’s NRE term deposits w.e.f.23.08.2012 vide HO
Circular No. 252/2012 dated 22.08.2012. These conversions are to be in tune with the provisions
of H O Circular No: IO/60/2012 dt.09.05.2012.

17. As CANARA SAMRIDDHI deposit scheme has been discontinued, AUTO RENEWAL of deposits under
this scheme will not take place. As such, the concerned depositors will have to be intimated
about the same by the branches. Vide H.O. Cir. No. 621/2016 dated 16.11.2016, Branches have
been advised to generate BO report No.170214 for details of Canara Samriddhi/ Canara K
Deposits accounts, obtain maturity pay out instructions from the depositors and enter the same
in TD039 option for all outstanding Canara Samriddhi/ Canara K Deposits accounts immediately.

18. Auto Renewal facility is not available for Canara Tax Saver Deposits, Capital Gains Accounts,
Canara Samriddhi deposits(discontinued w.e.f. 01.10.2015) and Non callable deposits.

All branches/offices are requested to note the contents of this Circular and display the revised
interest rate schedule prominently on their Notice Board, as per the enclosure.

K V SHAJI
GENERAL MANAGER
 HEAD OFFICE: BANGALORE
Branch : _________________

INTEREST RATES ON DOMESTIC/NRO TERM DEPOSITS

WITH EFFECT FROM 04.08.2018
Less than Rs.1 crore Rs.1 Crore to less than
Rs. 10 Crore #
PERIOD OF DEPOSIT
Gen Non Callable
Public Sr Citizen Callable ++
7 days to 14 days * 5.75 6.25 5.30 NA
15 days to 30 days 5.75 6.25 5.30 NA
31 days to 45 days 5.75 6.25 5.30 NA
46 days to 60 days 6.25 6.75 6.30 6.35
61 days to 90 days 6.25 6.75 6.75 6.80
91 days to 120 days 6.25 6.75 6.75 6.80
121 days to 179 days 6.25 6.75 6.75 6.80
180 days to 269 days 6.35 6.85 6.75 6.80
270 days to less than 1 year 6.40 6.90 6.35 6.40
1 year only 6.70 7.20 6.50 6.55
Above 1 year to less than 2 years 7.00 7.50 6.25 6.30
2 years & above to less than 3 years 6.70 7.20 6.25 6.30
3 years & above to less than 5 years 6.20 6.70 4.90 4.95
5 years & above to less than 8 years 6.20 6.70 4.90 No Quote@
8 years & above to 10 years 6.20 6.70 4.90 No Quote@
**444 days (Canara Shikhar Deposit) 7.05 7.55 -NA- -NA-
**555 days (Canara Shikhar Deposit) 7.10 7.60 -NA- -NA-

*Rates are applicable only for single deposit of Rs.5 lakh & above. Minimum period for renewal of
domestic/NRO term deposits is 7 days irrespective of the size of deposit.
++ Non callable term deposits are Bulk deposits (Rs.1 crore and above for other than Individuals and
HUF) of 46 days and above where PREMATURE WITHDRAWAL IS NOT PERMITTED. An additional
interest rate is presently offered for Non callable deposit.
@ Bank is not accepting Bulk term deposits under Non callable segment for maturities of 5 years
and above.
Senior citizens are eligible for additional interest rate of 0.50% for deposits of Rs 1 crore and above.
Senior Citizens are not eligible for additional interest rate on NRO term deposits and Deposits
accepted under Capital Gains Accounts Scheme,1988.
 A penalty of 1.00% will be levied for premature closure/part withdrawal/premature extension of
Domestic /NRO term deposits of less than Rs.1 Crore that are placed/renewed on or after 04.02.2011.
 No penalty will be levied for premature closure/part withdrawal/premature extension of Domestic
/NRO term deposits of Rs.1 Crore & above that are placed/renewed on or after 13.10.2012. However,
a penalty of 1.00% shall be levied for premature closure/part withdrawal/premature extension of
Domestic/NRO term deposits of Rs.1 crore & above that are placed/renewed from 04.02.2011 to
12.10.2012.
A penalty of 1.00% is applicable on Term Deposits under Capital Gains Account Scheme-1988, which
are prematurely converted/withdrawn/closed, irrespective of the size of the deposit amount.
No interest will be payable on term deposits prematurely closed/prematurely extended before
completion of 7th day.
Overdue deposits (i.e. matured deposits) will be paid interest at Savings Bank rate from the date of
maturity till the date of payment/ re-investment. Deposits opened under “Canara Samriddhi” scheme
will not be renewed automatically, as the scheme has been discontinued.
Auto Renewal facility is not available for Canara Tax Saver Deposits, Capital Gains Accounts, Canara
Samriddhi deposits(discontinued w e f 01.10.2015) and Non callable deposits.
For further details, customers may visit our website www.canarabank.com

BRANCH MANAGER