AUTO RENEWAL OF DOMESTIC TERM DEPOSIT ON MATURITY

To provide banking convenience to our customers and to ensure that there is no loss of interest to the customer, we shall be to providing the facility of auto renewal of Fixed Deposit on maturity w.e.f. 01.11.2007, unless there are instructions to the contrary. Presently, fixed deposit, on maturity, is renewed at the instance of customers only.

The modalities of auto renewal are as under:

v The auto renewal of the fixed deposit shall be carried out by the system (both Finacle and Bancmate) on maturity, where customer has not given any instruction to the contrary.

v The auto renewal facility will be applicable for all types of Fixed Deposit Schemes except (i) PNB Tax Saver Fixed Deposit Scheme (ii) Capital Gain Scheme iii) Recurring Deposit Schemes.

v The auto renewal will be for the same tenor as that of the existing FDR.

v FDs under PNB Mahabachat scheme, shall be auto renewed for the same tenor as that of existing FDR but auto renewal would be under PNB Spectrum (MBFD in case of Bancmate).

v The auto renewal period to be modified at the instance of the customer subject to the minimum or maximum period of the scheme. However, the customer would have the option of changing the tenor of the auto renewed FDR, with in 14 days of renewal of the FDR.

v The FD shall continue to be auto renewed till such time instructions to the contrary are received.

v At the time of granting loan against the fixed deposit, the depositor shall be obtained for renewal of the fixed deposit and for continuation of loan facility.

v At the time of payment of FD, the customer shall have to surrender the original FDR, wherever issued.

v The interest rate payable shall be the card rate applicable on the date of auto renewal of FDR, depending upon the tenor.

v The auto renewal of FD would be net of TDS, if any.

v The fixed deposits already overdue for renewal on the day of implementation shall not be covered.