Annexure-1 DOMESTIC DEPOSIT POLICY 2011-12 1) PREAMBLE: 1.

1) One of the important functions of the Bank is to accept deposits from the

public for the purpose of lending. In fact, depositors are the major stakeholders of the Banking system. Therefore the depositors and their interests form the key area of the Regulatory Framework for Banking in India and this has been enshrined in the Banking Regulation Act, 1949. The Reserve Bank of India is With empowered to issue directives / advises on interest rates on deposits and other aspects regarding conduct of deposit accounts from time to time. liberalisation in the financial system and deregulation of interest rates on term deposits, Banks are now free to formulate deposit products within the broad guidelines issued by RBI. 1.2) This Policy document on deposits outlines the guiding principles in respect This document recognises the

of formulation of various deposit products offered by the Bank and terms and conditions governing the conduct of accounts. rights of depositors and aims at dissemination of information with regard to various aspects of acceptance of deposit from members of public, conduct and operations of various deposits accounts, payment of interest on various deposit accounts, closure of deposit accounts, method of settlement of claims of deceased depositors etc., for the knowledge and benefit of customers. This document will impart greater transparency in dealing with the individual customers and create awareness among customers of their rights. The ultimate objective is that the customer will get services they are rightfully entitled to receive. 1.3) While adopting this policy, the Bank reiterates its commitments to customers outlined in our "Code of Bank's Commitments to

individual

Customers", which is based on the model Code, prepared by Banking Codes and Standards Board of India (BCSBI) and as approved by the Board. 1.4) This document is a broad framework under which the rights of common

depositors are recognised. Detailed operational instructions on various deposit schemes and related services are issued from time to time by the Bank. 2) TYPES OF DEPOSIT ACCOUNTS: While various deposit products offered by the Bank are assigned different names, they can be categorised broadly into Savings, Current and Term Deposits. Definitions of major deposits schemes are as under: 2.1 DEMAND DEPOSITS It means a deposit received by the Bank, which is withdrawable (Current and Savings Account Deposits are Demand Deposits) 2.1.1 "Savings Deposits" means a form of demand deposit which is subject to restrictions as to the number of withdrawals permitted by the Bank during a specified period. 2.1.2 "Current Account" means a form of demand deposit where from withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount and will also include other deposit accounts which are neither Savings Deposit nor Term Deposit like margin deposits where no interest is payable. 2.1.3 Overdue Term Deposits : Term Deposits on maturity if not renewed or encashed, will be treated as Overdue Term Deposit and it will be classified as Demand Deposits on demand.

2.2 TIME DEPOSITS : 2.2 TIME DEPOSITS :

2.2.1 "Term Deposit" means a deposit received by the Bank for a fixed period generally withdrawable only after the expiry of the fixed period and include deposits such as Recurring Deposits inclusive of Loan linked / insurance linked R.D., Dena Freedom Deposit, Samruddhi Deposit, Fixed Deposit, Savifix ( Dena Savifix Deposit Scheme offers the facility of Sweep-Out and Sweep-In of the deposits. .Ceiling for conversion of units to Term Deposit and Maximum period will be decided by the Bank from time to time. Penalty for premature withdrawal is not applicable for this scheme. Rate of interest applicable under Dena Savifix will be interest rate on Term deposits applicable on the date of conversion in units from Savings to Term Deposits ( as per denomination ) per day. Term deposit is available for a minimum period of 7 days and for a maximum period of 10 years. However, as per mandate of the customer, Term Deposit can be renewed on the date of maturity for the period mentioned in the mandate at the rate prevalent on the date of maturity. To ensure prompt payment of safe deposit locker, rent at the time of allotment, Bank will obtain a fixed deposit [Dena Safe Deposit Locker Rent Care Deposits Scheme] which would cover three years locker rent and charges for breaking open the locker in case of an eventuality. Pre Mature withdrawal of Term Deposit by the Customer is not allowed and to remain till the surrender of Locker. 3) ACCOUNT OPENING AND OPERATION OF DEPOSIT ACCOUNTS: 3.1 OPENING OF ACCOUNT The Bank, before opening any deposit account, will carry out due diligence as required under "Know Your Customer" (KYC) guidelines issued by RBI and such other norms or procedures adopted by the Bank from time to time. If the decision to open an account of a prospective depositor requires clearance at a higher level, reasons for any delay in opening of the account will be informed to him and the final decision of the Bank will be conveyed. The account opening forms, copy of BCSBI code and other related material

would be provided to the prospective depositor by the Bank. The same will contain details of information to be furnished and documents to be produced for verification like PAN No. or Form 60 to avail Tax benefit and some other records / proof like Ration card, Passport etc. Bank official opening the account has to explain the procedural formalities and provide necessary clarifications sought by the prospective depositor when he / she approaches for opening a deposit account. The depositor may seek further information / clarifications regarding any of these items at the time of opening the account from Banks officials. The account opening forms, copy of BCSBI code and other related material would be provided to the prospective depositor by the Bank. The same will contain details of information to be furnished and documents to be produced for verification like PAN No. or Form 60 to avail Tax benefit and some other records / proof like Ration card, Passport etc. Bank official opening the account has to explain the procedural formalities and provide necessary clarifications sought by the prospective depositor when he / she approaches for opening a deposit account. The depositor may seek further information / clarifications regarding any of these items at the time of opening the account from Banks officials. 3.2 NO FRILLS ACCOUNT ( DENA ALPA BACHAT KHATA ) Keeping in view of RBI guidelines, our Bank has launched a new scheme [Dena Alpa Bachat Khata Deposit Scheme] which will render banking services to the vast section of the population by making available a basic banking No Frills Account' with initial deposit of Rs 10/-. However, subsequently, the balance can be zero. The nature and number of transactions in such accounts are restricted, which is to be made known to the customer in advance in a transparent manner. 3.3 ZERO BALANCE ACCOUNT Zero Balance Salary accounts at the discretion of the Bank are opened for Corporate employees on case to case basis; such arrangements are to be approved by the competent authority i.e. Regional Manager Regional Managers are advised to evaluate the various aspects involved in opening of the such accounts such as Know Your Customer (KYC) norms, the cost benefit analysis etc.

3.4 MINIMUM BALANCE For deposit products like Savings Bank account and Current Deposit account, the Bank will normally stipulate certain minimum balances to be maintained as part of 'terms and conditions' governing operations of such accounts. specified by the Bank from time to time. For Savings Bank account the Bank may also place restrictions on number of transactions for any given period. The rules on Savings Bank Account operation are displayed on the Bank's website. For Savings Bank account the Bank may also place restrictions on number of transactions for any given period. The rules on Savings Bank Account operation are displayed on the Bank's website. Similarly, The Bank may specify charges for issue of cheque books, additional statement of accounts, duplicate pass-book, folio charges, etc. All such details, regarding terms and conditions for operation of the accounts, availability of facilities such as Direct debit /credit, standing instructions etc. and schedule of charges for various services will be informed to the prospective depositor while opening the account. Any changes in the terms and conditions governing operation of the account will be implemented, normally, after giving due notice to the customers. 3.5 WHO CAN OPEN THE ACCOUNT. Details with regard to opening of Accounts is furnished in KYC Policy. However, in nutshell, it is as under: Failure to maintain minimum balance in the account will attract levy of charges as

Savings Bank Accounts can be opened for eligible person / persons and
certain organisations / agencies (as advised by Reserve Bank of India from time to time).

 Current Accounts can be opened by individuals / partnership firms / private

and public limited companies / HUFs / Specified Associates / Societies / Trusts etc.

Term Deposit Accounts can be opened by individuals / partnership firms /

private and public limited companies / HUFs / Specified Associates / Societies / Trusts etc.

Term Deposits are accepted for a minimum period of 7 days & for a
maximum period of 10 years.

Certain Organisations notified by RBI / Government of India from time to

time will not be permitted to open any deposit account.

3.6 TYPE OF ACCOUNTS OTHER THAN USUAL DEMAND & TIME DEPOSITS 3.6.1 MINORS' ACCOUNTS: A minor can open Savings Bank account and the same can be operated by the natural guardian or by minor him / her, if he / she is above the age of 10 years. The account can also be opened jointly. Accounts singly operated by Minor will not be provided with cheque book facility. Birth date of minor is required to be noted on Banks account opening form at the time of opening account. On attaining majority, the erstwhile minor should confirm to the Bank of the balance in his / her account. If the account is otherwise to be operated by the natural guardian - recent photographs and fresh specimen signature of erstwhile minor duly verified by the natural guardian would be obtained and kept on record by the Bank for future operations. Savings Bank / Term Deposit account can also be opened by a minor jointly

with natural guardian or with Mother as the guardian. 3.6.2 OPENING OF ACCOUNT OF SALARIED PERSON :

For Opening of accounts of Salaried persons branches should not only rely on a certificate issued by the employer as open to misuse and fraught with risk. the only KYC document account for Such practice is Hence branches need to rely on purpose of certification of Identity as well as Address Proof.

certification only from the corporate and other reputed entities and should be aware of the competent authority resigned by certain employer to issue such certificate / letter along with one of the officially valid document i.e. PAN Card, Voters Identity card and utility bill (electricity bill/telephone bill) 3.6.3 ACCOUNT OF ILLITERATE / BLIND PERSON The Bank may at its discretion, open Deposit Accounts other than Current Account of Illiterate / Blind persons. The account of such person may be opened provided he / she call on the Bank personally along with a witness who is known to both the depositor and the Bank. Normally, no cheque book facility is provided for such Savings Bank account. The account of such person may be opened provided he / she call on the Bank personally along with a witness who is known to both the depositor and the Bank. Normally, no cheque book facility is provided for such Savings Bank account. At the time of withdrawal / repayment of deposit amount and / or payment of interest, the account holder should affix his / her thumb impression or mark in the presence of the authorized officer who should verify the identity of the person. The Branch shall explain the need for proper care and safe keeping of the pass book, etc. given to the account holder. The Bank official shall explain the 'terms and conditions' governing the account to the illiterate. 3.6.4 ACCOUNT OF VISUALLY IMPAIRED PERSONS The Bank to open Deposit Accounts other than Current Account of visually impaired person.

The account of such person may be opened provided he / she call on the Branch personally along with a witness who is known to both the depositor and the Bank. However, Branch shall ensure that all the banking facilities such as cheque book facility including ATM facility, Net banking facility, locker facility, retail loans, credit cards etc. are invariably offered to the visually challenged without any discrimination. At the time of withdrawal / repayment of deposit amount and / or payment of interest, the account holder should affix his / her thumb impression or mark in the presence of the authorized officer who should verify the identity of the person. The Bank to explain the need for proper care and safe keeping of the pass book, cheque book etc. given to the account holder. The Branch official to explain the 'terms and conditions' governing the account to the Visually Impaired Persons. Branches to render all possible assistance to the visually challenged for availing the various banking facilities. Branches to render all possible assistance to the visually challenged for availing the various banking facilities. 3.6.5 OPENING OF A BANK ACCOUNT OF A PERSON WHO HAS LOST BOTH HIS/ HER HANDS AND COULD NOT SIGN THE CHEQUE / WITHDRAWAL FORM In terms of the General Clauses Act, the term Sign with its grammatical variations and cognate expressions, shall with reference to a person who is unable to write his name, include mark with its grammatical variations and cognate expressions. The Supreme Court has held in AIR 1950 Supreme Court, 265 that there must be physical contact between the person who is to sign and the signature can be by means of a mark. This mark can be placed by the person in any manner. It could be the toe impression, as suggested. It can be by means of mark which anybody can put on behalf of the person who has to

sign, the mark being put by an instrument which has had a physical contact with the person who has to sign. 3.6.6 OPENING OF ACCOUNT OF THE DISABLED PERSONS WITH AUTISM ,CEREBRAL PALSY, MENTAL RETARDATION AND MULTIPLE DISABILITIES Bank will rely upon the Guardianship Certificate issued either by the District Court under Mental Health Act or by the Local Level Committees under the above Act for the purposes of opening / operating bank accounts. Bank will explain the details of opening of account and its operational guidelines to the parents / relatives of the disabled persons don't face any difficulty in this regard. 3.6.7 ACCOUNTS OF MARRIED WOMEN In order to facilitate newly married women in opening new account / transferring or getting the pre marital name and address changed in an existing is permitted Details of opening of new Account/ transferring of Account or Change in the name of existing account is furnished in KYC / Anti Money Laundering Policy.

3.6.8 OPENING OF CURRENT ACCOUNTS NEED FOR DISCIPLINE 3.6.8 OPENING OF CURRENT ACCOUNTS NEED FOR DISCIPLINE Regional Offices to ensure that branches shall not open Current accounts of entities which enjoying credit facilities (fund based or non-fund based) from the banking system without specifically obtaining a No-Objection Certificate from the lending bank(s). Branch may open current accounts of prospective customers in case no response is received from the existing bankers after a minimum waiting period of a fortnight. If a response is received within a fortnight, branch will assess the situation with reference to information provided on the prospective customer by the bank concerned and are not required to solicit a formal no objection, consistent with true freedom to the customer of banks as well as needed due diligence on the customer by the bank.

In case of a prospective customer who is a corporate or large borrower enjoying credit facilities from more than one bank, the branch will exercise due diligence and inform the consortium leader, if under consortium, and the concerned banks, if under multiple banking arrangement 3.6.9 NOMINATION : NOMINATION FACILITY FOR DEPOSITORS Nomination facility is available on all deposit accounts opened by individuals and sole proprietor. Nomination shall be made only in favour of individuals. Nomination can be cancelled or changed by account holder/s any time while making nomination / cancellation or change thereof it is required to be witness by third party. Nomination can be modified by the consent of account holder/s nomination can be made in favour of minor also. Branches to convenience all depositors to avail nomination facility. The nominee, in the event of death of the depositor/s would receive the balance outstanding in the account as a trustee of legal heirs. As such nominee cannot be an Association, Trust , Society or any other his Official capacity. In view

organisation or any office bearer thereof in As such nominee cannot be an

thereof, any nomination other than in favour of an individual will not be valid. Association, Trust , Society or any other his Official capacity. In view organisation or any office bearer thereof in

thereof, any nomination other than in favour of an individual will not be valid. There can not be more than one nominee in respect of joint deposit account. Banks to allow variation / cancellation of subsisting nomination by all the

surviving depositor ( s ) acting together and this is also applicable to deposits having operating instructions either or survivor . In the case of joint deposit account the nominee`s right arises only after the death of all the depositors.

In the event of the death of one of the joint account holders, the right to the deposit proceeds does not automatically devolve on the surviving joint deposit account holder, unless there is a survivorship clause. Acknowledgment be given to customer invariably.

Branch Indicate the name of the nominee in the Passbook / statement of Accounts / Term Deposit Receipts , in case the customer is agreeable for the same. To record the nomination , branch should affix a rubber stamp as follows DENA BANK -------------- BRANCH Nomination Registered 3.7 DUE DILIGENCE The due diligence process while opening a deposit account will involve satisfying about the identity of the person, verification of address, satisfying about his / her occupation and source of income. Obtaining introduction of the prospective depositor from a person and proof of identity, acceptable to the Bank, obtaining recent photograph of the person/s opening / operating the account and affixing the specimen signature in the account opening form in the presence of Bank official as part of Bank's due diligence process. Details are furnished in KYC guidelines. 3.8 PERMANENT REGISTER (GIR) ACCOUNT NUMBER (PAN) OR GENERAL INDEX

In addition to the due diligence requirements, under KYC norms the Bank is required by law to obtain Permanent Account Number (PAN) or General Index Register.(GIR) Number and / or declaration in form No. 60 or 61 as specified under the Income Tax Act / Rules. The requirements are subject to change from time to time depending upon the circumstances, guidelines and policies from time to time.

3.9

REFUSAL TO OPEN AN ACCOUNT

The Bank reserves the right to refuse a request for opening an account if the individual / organisation is found as declared having links with some terrorist organisation or found involved in Money Laundering activities etc. In case, an existing account is found to be linked / associated to the published list of terrorist organizations the same will be placed for appropriate action. The Bank can also refuse to open account of any person who is of suspicious nature or if the person desirous to have an account fails to provide necessary information / documents as required under KYC norms and which is a part of due diligence prescribed by the Bank. Deposit account can be opened by an individual in his own name, or by more than one individual in their joint names. Savings Bank account can also be opened by a minor jointly with natural guardian or with mother as the guardian. Minors above the age of 10 will also be allowed to open and operate saving Bank account independently but without the facility of issuing cheques to others. If the decision to open an Account of prospective depositor requires clearance at a higher level, reasons for any delay in opening of the account to be informed to him and the final decision of the Bank to be convey at the earliest to the customer 3.10 TYPES OF MANDATE IN JOINT ACCOUNTS The joint account holders can give any of the following type of mandates. If the mandate for operation of an account is To be operated jointly then all joint depositors will have to sign for an operation / for closure. 3.10.1 EITHER OR SURVIVOR: The operation in the Current and Savings Bank, the account will be allowed to be operated by either of the joint account holders during their lifetime and by the survivor on the death of either of them. However, for closure of the account,

signatures of both the account holders will be required unless mandate to the contrary is available on Banks records. In case of Term Deposits, the mandate Either or Survivor is binding on the maturity of the deposits. For premature withdrawal / raising any Loan against the Deposits, signature of the both the account holders is necessary, unless the mandate expressly authorizes the Bank otherwise. 3.10.2 ANYONE OR SURVIVOR/S: In case of such joint Savings and Current accounts the operation in the account will be allowed to any one of them during their life time and by the survivor or survivors on the death of any one of them. However, for closure of the account signature of the all the account holders are a must, unless the mandate is otherwise. These issues will be governed by the Banks policies in force from time to time. As per a recent Court Judgment, in Current account , Savings account and Term Deposit account of individuals, if one of the depositors requests the Bank to not to allow operation by another depositor(s), the Bank will not accede to such request and shall be justified in asking the depositor to bring a Court Order to that effect. This shall not be applicable to Partnership or other Business entity's accounts. In case of Term Deposits the mandate is binding on maturity of the deposits. For premature withdrawal of the deposits or for availing advance against the deposit receipt, signature of all the depositors is required, unless there is a mandate to the contrary. The procedure shall be governed by the Banks prevailing policies. 3.11 POWER OF ATTORNEY At the request of the depositors the Bank will register mandate / power of attorney given by him authorising another person to operate the account on his behalf. 3.12 RATE OF INTEREST

Payment of Interest on Savings Deposit to be calculated on Daily product basis. At present, Interest Rate applicable on Savings Deposit is 3.5% ( subject to change ). 3.13 CALCULATION OF INTEREST: In terms of Reserve Bank of India directives, interest shall be calculated at quarterly intervals on term deposits and paid at the rate decided by the Bank depending upon the period of deposits. In case of monthly deposit scheme, the interest shall be calculated for the quarter and paid monthly at discounted value. The interest on term deposits is calculated by the Bank in accordance with the formulae and conventions advised by Indian Banks' Association. For calculation of interest, 365 days will be reckoning irrespective of leap year. For the purpose of calculation of interest on domestic term deposit, has prescribed that on deposits repayable in less than three months or where the terminal quarter is incomplete, interest should be paid proportionately for the actual number of days the year at 365 days. If a Fixed Deposit Receipt matures and proceeds are unpaid, the amount left unclaimed with the Bank will attract Saving Bank rate of interest. If a Fixed Deposit Receipt matures and proceeds are unpaid, the amount left unclaimed with the Bank will attract Saving Bank rate of interest. 3.14.1 PAYMENT OF INTEREST ON TERM DEPOSITS MATURING ON HOLIDAYS: If due of a Term Deposit falls on a holiday, Sunday, non-business working day (as also Saturday in case of NRE deposits) then interest will be paid for such intervening day(s), at the originally contracted rate, till the succeeding working day. 3.14.2 ROUNDING OF TRANSACTIONS: All transactions, including payment of interest on deposits/ charging of interest on advances, would be rounded off to the nearest rupee; i.e. fractions of 50 paise and above shall be rounded off to the next higher rupee and fraction of

less than 50 paise shall be ignored. Issue prices of cash certificates should also be rounded off in the same manner. However, as per RBI guidelines, branches should ensure that Cheques / Drafts issued by clients containing fraction of Rupees are not rejected or dishonoured by the Bank. 3.14.3 PAYMENT OF INTEREST TO SENIOR CITIZENS :

Under Dena Senior Citizen Deposit Scheme, Senior Citizens are eligible for
an additional interest over and above card rate for all maturities. The additional interest paid to Senior Citizens on Term Deposits is subject to change from tome to time.

The additional interest paid to Senior Citizens is not applicable to any type of
Non-Resident Deposits.

In the case of a Term deposit which stands in the name of a HUF, the Karta
of the HUF can not be offered higher rate of interest even if he is a senior citizen as the beneficial owner of the deposit is the HUF. 3.15 INTEREST RATE FOR STAFF MEMBERS AND EX-STAFF MEMBERS 3.15 INTEREST RATE FOR STAFF MEMBERS AND EX-STAFF MEMBERS One percent additional rate of interest over its ruling rate of interest on various term deposit schemes and Savings Bank deposits in the name of a staff member, individually or jointly with any member of his / her family. Spouse of a deceased member or a deceased retired member of the bank's staff should be given higher rate of interest of one per cent over the usual rate applicable to the public. A similar benefit should be given to an association or a fund, members of which are members of the banks staff

The branch should obtain the declaration as per Mannual of Instructions from the members of the staff who are already having deposit accounts and also note to obtain a similar declaration where fresh deposits are received from staff members. The name of staff members may be first or second in order. 3.15.1 CATEGORIES OF STAFF ELIGIBLE FOR BENEFITS: (i) a member of the banks staff means a person employed on a regular basis, whether full-time or part-time, and includes a person recruited on probation or employed on a contract of a specified duration or on deputation and an employee taken over in pursuance of any scheme of amalgamation, but does not include a person employed on casual basis. (ii) In the case of employees taken on deputation from another bank, the bank from which they are deputed may allow additional interest in respect of the savings or term deposit account opened with it during the same period of deputation; (iii) In the case of persons taken on deputation for a fixed duration, or on a contract of a fixed duration, the benefit will cease to accrue on the expiry of the term of deputation or contract, as the case may be.

(iv) A retired member of the banks staff means an employee retiring whether on superannuation or otherwise as provided in the banks Service/Staff Regulations, but does not include an employee retired compulsorily or in consequence of disciplinary action; (v) Family means and includes the spouse of the member/retired member of the banks staff and the children, parents, brothers and sisters of the member/retired member of the banks staff, who are dependent on such member/retired member, but does not include legally separated spouse; (vi) Ex-Staff who has taken One time VRS announced in 2001 and Ex-Staff who has taken VRS as per DBOSR & Banks Pension regulation.

(vii) Persons who were in employment of the Bank and have resigned from the services of the Bank and not falling under any one of the above , will not get any benefit available to Staff of the Bank. (The above definition of Family is only for entitlement of applicable interest rate on joint account of staff members with their family members) Payment of additional interest is subject to the following conditions, namely: (i) The additional interest is payable only so long as the person continues to be eligible for the same and in case of his ceasing to be so eligible, till the maturity of a term deposit account; (ii) In the case of employees taken over pursuant to the scheme of amalgamation, the additional interest is allowed only if the interest at the contractual rate together with the additional interest does not exceed the rate, which could have been allowed if such employees were originally employed by the bank. Bank Employees Federations in which bank employees are not direct members are not eligible for additional interest.

In case of Domestic deposits, it will be in order for banks to give their retired staff, who are senior citizens, the benefit of higher interest rates as admissible to senior citizens (60 years of age or above) over and above the additional interest of not exceeding one per cent payable to them by virtue of their being retired members of the banks' staff. However, if a staff member who is not a senior citizen and opens a joint account along with a senior citizen, he will be entitled for benefit of higher rate as applicable to staff only and he will not be entitled for benefit of higher rate payable to senior citizen.In the case of Non-Resident (External) deposits of staff members, existing or retired, interest rate including any additional interest paid

to them by virtue of their being staff members, should not exceed the ceiling stipulated by RBI. 3.15.2 INTEREST RATE ON DEPOSITS FOR CHAIRMAN AND MANAGING DIRECTOR AND EXECUTIVE DIRECTOR Bank will pay additional interest not exceeding one percent per annum over and above the rate of interest stipulated on deposits accepted/renewed from Chairman & Managing Director, Executive Director appointed for a fixed tenure. However, they are eligible to get the benefit only during the period of their tenure. 3.15.3 INTEREST RATE ON CURRENT ACCOUNTS MAINTAINED BY REGIONAL RURAL BANKS Bank will not pay interest on the current accounts maintained by RRBs 3.16 ISSUE OF CHEQUE BOOK: Cheque Book can be issued to customers

In person To other person By Post

Officer issuing the Cheque Book to the customer must ensure to affix or write account number on every leaf. Officer issuing the Cheque Book to the customer must ensure to affix or write account number on every leaf. 3.16.1 IN PERSON: Cheque Book be issued to the Client personally against the Requisition Slip from the Cheque Book issued to him / her. If the request for issuance of Cheque Book is through Request letter, customer be advised to mention the reasons for not submitting requisition slip in his / her request letter. identity of a person to whom Cheque Book is issued 3.16.2 TO PERSON OTHER THAN CUSTOMER : Branch to establish the

Issue of Cheque Book to third party be discouraged, if not eliminated altogether. In such cases, the identity of the person collecting the cheque Book on behalf of third person should be established beyond doubt and detailed KYC be carried out & confirmation be obtained from customer over phone and recorded. 3.16.3 TO CUSTOMER BY POST: In case of up-country account holders, cheque books can be issued and the same should be sent to the customer by post under Registered A.D./authorised courier service at the address given, provided the requisition slip has been received by the branch. Bank will not obtain such undertakings from depositors as follows: the dispatch of Cheques Books by the Courier is at depositors risk" . 3.17 TRANSFER OF ACCOUNTS FROM ONE BRANCH TO ANOTHER BRANCH Transfer of all accounts within branches of Dena Bank are allowed following the usual procedure. However, RBI has issued revised guidelines on customer service vide DBOD.No.Leg.BC.75/09.07.005 / 2008-09 dated November 3 2008, advising Banks to hand over the details of account / documents to be transferred to the customer in sealed cover. The account transfer form with the enclosures may be handed over to the customer in a sealed cover if he/she so desires for delivery at the transferee office / branch,. However, the transferee office should also be separately supplied with a copy of the account transfer letter. The branch transferring the account should inform whether the experience of the branch in the conduct of the account was satisfactory or not. The transferor branch should also intimate to the transferee branch regarding standing instructions, if any. It is necessary for the transferee branch to obtain a fresh set of account opening form / specimen signature card after complying with the KYC Guidelines. The old

account opening form and specimen signature card should be kept with the new set of account opening forms. 3.18 OPERATIONS IN ACCOUNTS OTHER THAN USUAL DEMAND & TIME DEPOSITS: 3.18.1 OPERATION OF ACCOUNTS BY OLD & INCAPACITATED PERSONS 3.18.11 TYPES OF SICK / OLD / INCAPACITATED ACCOUNT HOLDERS The cases of sick / old / incapacitated account holders fall into following categories:

An account holder who is too ill to sign a cheque / cannot be physically

present in the bank to withdraw money from his bank account but can put his/her thumb impression on the cheque / withdrawal form

An account holder who is not only unable to be physically present in the bank
but is also not even able to put his/her thumb impression on the cheque /withdrawal form due to certain physical incapacity. 3.18.12 FACILITY TO SICK / OLD / INCAPACITATED NON-PENSION ACCOUNT HOLDERS The facility offered to pension account holders (minimum balance clause for saving account not applicable for pension accounts) will be extended to the nonpension account holders also who are sick / old / incapacitated and are not willing to open and operate joint accounts. 3.19 DISHONOUR / RETURN OF CHEQUES Reserve Bank of India vide circular no. DPSS.CO.CHD.No.485/03.06.01/2010-11 dated September 1, 2010 has instructed Banks that the cheque return memo should accompany a cheque dishonoured / returned for any reason duly signed by the Branch official indicating the date of return in the cheque retain memo. 3.20 DEALING WITH INCIDENCE OF FREQUENT DISHONOUR With a view to enforce financial discipline among the customers; the bank will deal as follows:

In the event of dishonour of a cheque valuing rupees one crore and above drawn on a particular account of the drawer on four occasions during the financial year for want of sufficient funds in the account, no fresh cheque book would be issued. Also, the bank may consider closing current account at its discretion. However, in respect of advances accounts such as cash credit account, overdraft account, the need for continuance or otherwise of these credit facilities and the cheque facility relating to these accounts should be reviewed by appropriate authority higher than the sanctioning authority. For the purposes of introduction of the condition mentioned at (i) above in relation to operation of the existing accounts, bank may, at the time of issuing new cheque book, issue a letter advising the constituents of the new condition. If a cheque is dishonoured for a third time on a particular account of the drawer during the financial year, banks should issue a cautionary advice to the concerned constituent drawing his attention to aforesaid condition and consequential stoppage of cheque facility in the event of cheque being dishonoured on fourth occasion on the same account during the financial year. Similar cautionary advice may be issued if a bank intends to close the account. 3.21 WRITING OF CHEQUES IN ANY LANGUAGE : 3.21 WRITING OF CHEQUES IN ANY LANGUAGE : The bank will accept cheques written in Hindi, English or in the concerned Regional language. 3.22 SWITCHING BANKS BY CUSTOMERS There is no bar on switching of Banks by Customers. 3.23 SETTLEMENT OF DEATH CLAIM Any claim of money of a deceased depositor will be settled as per Death Claim Policy of the Bank.

In case of deposit accounts opened with the nomination facility recorded payment of the balance of the deceased depositors account will be made to the nominee. Nominee named therein will be holding the death claim settlement as a trustee of the legal heirs of the deceased. In case of deposit accounts where the account was opened with the survivorship clause (Either or Survivor, `Anyone or Survivor, `Former or Survivor or `Latter or Survivor) or in case where the depositor had utilised the nomination facility and had made a valid nomination - payment of the balance of the deceased depositor's account will be made to the survivor(s) / nominee without insistence on production of legal representation. If the legal heirs of the deceased depositor prefer any claim on the disposal of the money of the deceased it will be in order for the Bank to inform them that unless they obtain and serve on the Bank an order from a competent court restraining the Bank from effecting such payment to the survivor/s Or to the nominee, the Bank will be within its rights to act as per the original mandate. 3.24 SETTLEMENT OF CLAIMS IN RESPECT OF MISSING PERSONS Bank will follow the following system in case a claim is received from a nominee / legal heirs for settlement of claim in respect of missing persons .

The settlement of claims in respect of missing persons would be governed by the provisions of Section 107 / 108 of the Indian Evidence Act, 1872. Section 107 deals with presumption of continuance and Section 108 deals with presumption of death. As per the provisions of Section 108 of the Indian Evidence Act, presumption of death can be raised only after a lapse of seven years from the date of his/her being reported missing. As such, the nominee / legal heirs have to raise an express presumption of death of the subscriber under Section 107/108 of the Indian Evidence Act before a competent court. If the court presumes that he/she is dead, then the claim in respect of a missing person can be settled on the basis of the same. Considering the legal opinion and taking

into account the facts and circumstances of each case, Bank will settle the claim in respect of missing persons on the basis of each case. In addition to the documents required under the Death Claim Policy as per threshold limits of claim, Claimant/s will submit FIR and the non-traceable report issued by Police Authorities and letter of indemnity. 4) INTEREST PAYMENTS & AUTOMATIC RENEWAL: 4.1 MANDATE GIVEN : If mandate is given by the Depositor, Automatic Renewal is allowed for the period mandated in the Account Opening form. 4.2 MANDATE NOT GIVEN : If mandate is not given, automatic renewal is not permitted. However, the customer will be informed with request to renew the same within 14 days. If it is not renewed within 14 days and subsequently the customer is approaching the branch either for renewal of Term Deposit or Encashment of Term Deposit, Bank will pay Savings Bank Deposit interest till the date of renewal of deposit and / or till the date of encashment of Term Deposit. If part payment of Overdue Term Deposit is to renewed, Overdue interest would be paid on the entire Maturity value. 5. DEDUCTION OF TAX: 5. DEDUCTION OF TAX: The Bank has statutory obligation to deduct tax at source if the total interest paid / payable on all term deposits held by a person exceeds the amount specified under the Income Tax Act. The Bank will issue a tax deduction certificate (TDS certificate) for the amount of tax deducted. The depositor, if entitled for exemption from TDS can submit a declaration (claiming exemption) in the prescribed format at the beginning of every financial year. Customers to provide valid Permanent Account Number (PAN) in Form 15 G/ 15H desire to avail Tax benefits. if they

6) ADDITION OR DELETION OF THE NAME/S OF JOINT ACCOUNT HOLDERS: The Bank may, at the request of all the joint account holders allow addition or deletion of name/s of joint account holder/s. If the circumstances so warrant bank will allow an individual depositor to add the name of another person as a joint account holder. However, in no case should the amount or duration of the original deposit undergo a change in any manner in case the deposit is a term deposit. Bank may, at its discretion, and at the request of all the joint account holders of a deposit receipt, allow the splitting up of the joint deposit, in the name of each of the joint account holders only, provided that the period and the aggregate amount of the deposit do not undergo any change. Note: NRE deposits should be held jointly with non-residents only. residents jointly with residents. 7) CUSTOMER INFORMATION: Information collected from the customers will not be used for cross selling of services or products by the Bank their subsidiaries and affiliates. account holder. 8) SECRECY OF CUSTOMER'S ACCOUNTS: 8) SECRECY OF CUSTOMER'S ACCOUNTS: The Bank will not disclose details / particulars of the customer's account to a third person or party without the expressed or implied consent from the customer. However, there are some exceptions to this, viz. If the Bank proposes to use such information, it will be done strictly with the consent of the NRO accounts may be held by non-

disclosure of information under compulsion of law, where there is a duty to public to disclose and where interest of the Bank requires disclosure.
9) PREMATURE WITHDRAWAL OF TERM DEPOSIT:

The Bank, at its discretion, may allow premature withdrawal of term deposit before completion of the period of the deposit agreed upon at the time of placing the deposit. The Bank will charge penal interest rates as per policy for premature withdrawal of term deposit in force from time to time. In no case, the rate of interest on premature withdrawal of Term Deposit will be higher than the contractual rate even if the rate as per the Card Rates works out to be higher than the contracted rate 9.1 UPTO RS 1 CRORE : Premature withdrawal upto Rs 1 crore is allowed in normal circumstances before completion of the period of the deposit as agreed upon at the time of placing the deposit. The Bank will charge penal interest rates as per policy for premature withdrawal of term deposit in force from time to time. 9.2 Rs 1 CRORE TO Rs 10 CRORES : In case of Individual and HUF, the Bank may allow premature withdrawal of deposits. In case of Term Deposits of Rs. 1 to 10 Crores of the entities other than Individuals and Hindu Undivided Families (HUF), the Bank will not allow premature withdrawal in normal circumstances. However, in exceptional circumstances and also considering the prevailing market conditions, liquidity position and existing / potential business relationship with entities, the General Manager ( Treasury ) is empowered to decide on the request for premature withdrawal of deposits from such entities. 9.3 ABOVE Rs 10 CRORES In case of Individual and HUF, the Bank may allow premature withdrawal of deposits. In case of Term Deposits of Rs.10 Crores and above of the entities other than Individuals and Hindu Undivided Families (HUF), the Bank will not allow premature withdrawal in normal circumstances. However, in exceptional circumstances and also considering the prevailing market conditions, liquidity position and existing/potential business relationship with entities, the Chairman

& Managing Director or Executive Director is empowered to decide on the request for premature withdrawal of deposits from such entities along with the rate of penalty. The penalty for Premature Withdrawal would be as under except when premature withdrawal is for reinvestment to take advantage of increased rate of interest.

Penalty for Premature withdrawal in case of Term Deposit Less than Rs. 1
Crore - 1% below the applicable interest rate. (subject to change )

Penalty for Premature withdrawal in case of Term Deposits Rs. 1 Crore and
above upto and less than Rs. 10 Crores - 2% below the applicable interest rate.

Penalty for Premature withdrawal in case of Term Deposits for Rs. 10 Crore
and above of the individuals and Hindu Undivided family (HUF) - 2% below the applicable interest rate. Chairman and Managing Director or Executive Director at his / her discretion is empowered to decide wavier on such aforesaid premature withdrawal penalty, considering the value and business potential of the account, justification put forth by field functionaries etc.

DEATH OF DEPOSITOR : DEATH OF DEPOSITOR : In the event of death of depositor, premature termination of Term Deposit would be allowed and such pre mature withdrawal would not attract any penal charge 10 CONVERSION OF TERM DEPOSITS / RECURRING DEPOSIT FOR REINVESTMENT IN TERM DEPOSIT As per guidelines of Reserve Bank of India dated April 20, 2010 Bank should allow conversion of Term Deposits / Recurring Deposits to enable depositors to immediately reinvest the amount lying in the aforesaid deposits with the same branch in another Term Deposit. The interest should be paid at the rate applicable for the expired period only without levying any penalty provided the

deposits remains with the branch after reinvestment for a period longer than the remaining period of original contract. 10.1 WITHDRAWAL OF TERM DEPOSITS FOR REINVESTMENT FOR LONGER MATURITY : Sometimes because of an upward change in rates of interest, customers approach the Bank for renewal of the deposit receipt before due date for longer maturity in order to take advantage of the revised rates. Such a request may be treated as Extension of Deposit and acceded to. Interest for the expired period of the deposit should be paid at the rate applicable for the expired period only. The penalty of premature withdrawal may not be imposed in respect of deposits up to Rs.1 Crore per receipt. However, for Term Deposit of Rs 1 crore and above, Chairman and Managing Director or Executive Director at his / her discretion can waive the penalty for premature withdrawal of term deposit for reinvestment for longer maturity. The Term deposit , however be renewed for a period longer than the unexpired period of the original deposit. It may be noted that interest on deposit for the period it has remained with the Bank will be paid at the rate applicable to the period for which the deposit remained with the Bank and not at the contracted rate. Premature withdrawal of a deposit will be allowed for Staff / Ex-staff for any number of times subject to interest will be paid for the period up to which the deposit has remained with the Bank with minimum 15 days (for term deposit below Rs. 1.00 lac) and 7 days (for term deposit Rs. 1.00 lac & above) at a time without levy of penalty for premature withdrawal of deposits. Premature withdrawal of a deposit will be allowed for Staff / Ex-staff for any number of times subject to interest will be paid for the period up to which the deposit has remained with the Bank with minimum 15 days (for term deposit below Rs. 1.00 lac) and 7 days (for term deposit Rs. 1.00 lac & above) at a time without levy of penalty for premature withdrawal of deposits. 11) RENEWAL OF OVERDUE TERM DEPOSITS

11.1 RENEWAL OF TERM DEPOSIT ON THE DATE OF MATURITY. 11.11 WITHIN 14 DAYS OF MATURITY When a term deposit is renewed on maturity, on renewed deposit interest rate for the period specified by the depositor as applicable on the date of maturity would be applied, if the request is received within 14 days of maturity. 11.12 AFTER 14 DAYS OF MATURITY: In terms of RBI Master Circular dated July, 1, 2009 , para 24 - Unclaimed Deposits / Inoperative Accounts in Banks-, sub-para 24.2 (XI), which reads as under : Accordingly, if the Term Deposit is presented for renewal after 14 days, the deposit will be renewed from the date of presentation or encashment after 14 days, Savings Deposit rate would be applicable for the overdue period or in other words if a Fixed Deposit Receipts matures and proceeds are unpaid, the amount left unclaimed with the Bank will attract Savings Bank Rate of Interest. If part payment is to be renewed, the interest for the overdue period shall be paid on the Maturity value of Term Deposits 11.13 OVERDUE TERM DEPOSIT NOT RENEWED BUT ENCASHED: It the overdue Term Deposit is not renewed but it is encashed, Bank will pay Savings Bank Interest on overdue Term Deposit till the date of encashment.

11.2 FROZEN TERM DEPOSITS: 11.2 FROZEN TERM DEPOSITS: In the cases of term deposit frozen by Bank on the basis of the orders of the enforcement authorities of the government:

A request letter may be obtained from the customer for renewal for a term
equal to the original term, on maturity of the existing deposit.

 No new receipt is required to be issued. However, suitable note may be made

regarding renewal in the deposit ledger.

Renewal of deposit is to be advised by registered letter/Speed Post to the

concerned Government Department under advice to the depositor. In the advice to the depositor, the rate of interest at which the deposit is renewed would be mentioned.

The rate of interest for such renewal will be as under :When a term deposit is renewed on maturity, on renewed deposit interest rate for the period specified by the depositor as applicable on the date of maturity would be applied, if the request letter is received within 14 days of maturity. If the Term Deposit is presented for renewal after 14 days, the deposit will be renewed from date of presentation and Savings Deposit rate would be applicable for the overdue period or in other words if a Fixed Deposit Receipts matures and proceeds are unpaid, the amount left unclaimed with the Bank will attract Savings Bank Rate of Interest. 12 ADVANCES AGAINST DEPOSITS: The Bank may consider request of the depositor/s for loan/ overdraft facility against term deposits duly discharged by the depositor/s & on execution of necessary security documents. The Bank may also consider loan against deposit standing in the name of minor. However, a suitable declaration stating that loan being availed is for the benefit of the minor is to be furnished by the Guardian of the Minor, who is authorised to operate the account. The interest rate on such advances will be at the rates decided by the Bank. At the request of the depositor, the Bank may grant loan/ overdraft against a term deposit to third party also. 13) ISSUE OF TERM DEPOSIT RECEIPTS :

Term deposit receipt will be issued indicating the full details, such as, date of issue, period of deposit, due date, applicable rate of interest, maturity value of Term Deposit etc. 14) INSURANCE COVER FOR DEPOSITS: All Bank deposits are covered under the insurance scheme offered by Deposit Insurance and Credit Guarantee Corporation of India (DICGC) subject to certain limits and conditions. 15) STOP PAYMENT FACILITY: The Bank will accept stop payment instructions from the depositors in respect of cheques issued by them and not paid by the Bank till receipt of the intimation. Stop payment charges are applicable as per the Bank's Schedule of Charges modified by the Bank from time to time. 16) INOPERATIVE / DORMANT ACCOUNTS Banks should play a more pro-active role in finding the whereabouts of the account holders whose accounts have remained inoperative.

Interest on savings bank accounts should be credited on regular basis

whether the account is operative or not.

Inoperative / Dormant accounts where :

Required minimum balance is not maintained , penalty as per Banks service charges will be levied.

INOPERATIVE / DORMANT ACCOUNTS: INOPERATIVE / DORMANT ACCOUNTS: As per RBI Master Circular DBOD No. Leg.BC.9/09.07.006 / 2009-10 dated July 1, 2009 on Customer Service, Savings as well as Current Account should be treated as inoperative / dormant, if there are no transactions in the account for a period of two years. Further, in terms of Paragraph 24.2 (VI), for the purpose

of classifying an account inoperative , both the type of transactions induced at the instance of customers as well as third party to be considered As per RBI guidelines, DBOD. Leg. No.BC.55/ 09.07.005 / 2009-10 dated October 30,2009 if the interest on Fixed Deposit account is credited to the Savings Bank account as per the mandate of the customer, the same should be treated as customer induced transaction. As such, the account should be treated as operative account as long as the interest on Fixed Deposit account is credited to the Savings Bank account. The Savings Bank account can be treated as Inoperative account only after two years from the date of last credit entry of the interest on Fixed Deposit account Guidelines based on Paragraph 24.2 (VI) of RBI Master Circular DBOD No. Leg.BC.9/09.07.006 / 2009-10 dated July 1, 2009 on Customer Service

Branches shall approach the customers with a request to start operating their
accounts and also inform them in writing that there is no operation in their accounts.

The Branches shall ascertain from the customers reasons for not operating
their accounts.

If letters are returned undelivered, they may immediately be put on enquiry

to find out the whereabouts of customers or their legal heirs in case they are deceased. In case the whereabouts of the customers are not traceable, Bank should consider contacting the persons who had introduced the account. They could also consider contacting the employer/ or any other person whose details are available with them. They could also consider contacting the account holder telephonically in case his telephone number/ cell number has been furnished to the Bank. In case any reply is given by the account holder giving the reasons for not operating the account, Banks will continue classifying the same as an operative account for one more year within which period the account holder will be

requested to operate the account. However, in case the account holder still does not operate the same during the extended period, banks will classify the same as inoperative account after the expiry of the extended period. ALLOWING OPERATIONS IN INOPERATIVE ACCOUNTS.

Operation in such Accounts may be allowed after due diligence as per risk
category of the customer. Adequate care should be taken at the time of withdrawals by cheque or otherwise from these accounts. The Branch Manager or the Accountant should personally supervise such withdrawals.

If a Fixed Deposit Receipt matures and proceeds are unpaid, the amount left
unclaimed with the bank will attract Savings bank rate of interest.

Branches should credit the respective deposit account at the end of each
quarter by debiting interest paid account.

Eligible transaction for classifying the account as Inoperative. For the purpose of classifying an account as inoperative both the type of
transactions i.e. Debit as well as Credit transactions induced at the instance of customer as well as third party will be considered. However, the service charges levied by the bank or interest credited by the bank will not be considered.

No inconvenience to the customer. Further, the segregation of the inoperative accounts is from the point of view
of reducing risk of frauds etc. However, the customer should not be put to inconvenience in any way, just because his account has been rendered inoperative.

No charge for activation of Inoperative accounts. There should not be any charge for activation of inoperative accounts. Audit and inspection of inoperative accounts.

Amounts lying in inoperative accounts ledger will be subjected to internal audit/statutory audit by the bank. 17) SAFE DEPOSIT LOCKERS: This facility is offered through select Bank branches. Safe deposit lockers may be hired by an individual (being not a minor) singly or jointly with another individual(s), HUFs, firms, limited companies, associates, societies, trusts etc. Nomination facility is available to individual(s) holding the lockers singly or jointly. In respect of lockers held in joint names, up to two nominees can be appointed. To ensure prompt payment of safe deposit locker rent , at the time of allotment Bank will obtain a fixed deposit [Dena Safe Deposit Locker Rent Care Deposits Scheme] which would cover three years rent and the charges for breaking open the locker in case of an eventuality. NOMINATION FACILITIES FOR SAFE CUSTODY ARTICLES DEPOSIT LOCKERS AND SAFE

Nomination facilities are available not only for deposit accounts but also for safe custody articles and safe deposit lockers. Branches to ensure compliance of acknowledging receipt of duly completing form of nomination, cancellation and modification of the nomination As Nomination facilities are available only in case of individual depositors and not in respect of persons jointly depositing articles for safe custody. Minor can be a nominee . However , Bank has to ensure that when the contents of a locker are sought to be removed on behalf of minor nominee , the articles are handed to a person, who , in law, is competent to receive articles on behalf of the minor. Minor can be a nominee . However , Bank has to ensure that when the contents of a locker are sought to be removed on behalf of minor nominee , the articles are handed to a person, who , in law, is competent to receive articles on behalf of the minor.

As regards lockers hired jointly , on the death of any one of the joint hirers, the content of the locker are only allowed to be removed jointly by the nominees and the survivors ) after an inventory was taken in a prescribed manner. In such case , after such removal preceded by an inventory, the nominee and surviving hirer(s) may still keep the entire contents with the Bank , by entering into a fresh contract of hiring of locker. 18) REDRESSAL OF COMPLAINTS AND GRIEVANCES: Depositors having any complaint / grievance with regard to services rendered by the Bank have a right to approach authority(ies) designated by the Bank for handling customer complaint / grievances. The details of the internal set up for redressal of complaints / grievances is available in the Banks Grievances Redressal Policy. 19) GENERAL: The policy prescription as above shall be deemed to have been amended from time to time upon any change therein being advised by Government of India and / or Reserve Bank of India or any other Statutory / Regulatory Authority or as decided by the Bank from time to time.

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