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1. Who may open the account?
a) Minors from day-1 to less than 18 years:
Minors from day-1 to less than 18 years with natural guardians are
eligible to open the account under the scheme. Students in Pre-university or +2 classes, in
under-graduate/ post graduate courses and in engineering, medical, law and other professional
courses, who are above 12 years but below 18 years of age, can open their account in their own
name.
A declaration should be given by the natural guardian that the funds
to be deposited in the account of the ward comprise of his own funds and that of the ward and it is
his/her intention to utilize the money for the benefit of the minor and eventually make over the
balance lying at the credit of the account available to the minor on his/her attaining
majority. The right of the guardian to operate such account will cease upon, the minor ward
reaching the age of 18 years and the balance in the account will be the exclusive property of the
ward.
b) Students of 18 years and above
: The students in the age group of 18 years and above are eligible to
open the account under the scheme. They can open / operate the account independently without any
restrictions on the sources of funds / amount being deposited / withdrawn. They will be
eligible for cheque book, ATM facility in their own name
2. Joint Accounts
Accounts in joint names can
NOT
be opened under the scheme.
3. Obtaining of Photographs
Guardians opening the account in the name of their minor wards should
provide their own photographs. If the guardian authorises the ward (Of the age of 12 years or
higher), to operate the account independently photographs of the minor should also be
provided.
4. Amount of minimum balance / initial deposit
Minimum initial deposit is Rs.10/- with no restriction on
maximum. The account will not be closed if it subsequently has zero balance. There is
no prescribed minimum balance and thus no penalty will be levied even if the balance comes down to
zero any time.
5. Operation in the account
Guardian will operate the account till the ward attains
majority.
A ward of age of 12 years or higher, can be authorised by the
guardian to operate the account. In such cases the cash deposit / withdrawal shall be restricted to
Rs. 10,000/- per day. Other credit / debits above this should be done only by the
guardian.
The Guardian can utilise the ECS Debit facility to authorise payment
of the periodical School / Hostel fees, which will be carried out free of charges.
The guardian can also give authority / standing instruction to the
Bank to pay school / college fee, hostel fee etc., by debiting this account. Such payment will be
effected free of Charges. Guardian should arrange with the School Hostel Authorities to send the
periodical demands to the bank and indicating the details like name of the ward, class in which
studying fee required to be paid, period for which the fee is required to be paid, and account
number from which the payment is expected to be made.
6. Rate of Interest
Rate of interest on credit balances is governed by Reserve Bank of
India Regulations as applicable to Savings Bank accounts. The rate, at present, is 3.5% per annum
payable half yearly (February and November) on lowest balance held between 10
th and last day of a calendar month The interest will be rounded off to nearest rupee
and will be paid only if the amount of interest works to Rs. 1/- or higher.
7. Conversion to normal S. B. account
Once the ward attains the age of 18 years the account will be
converted to regular Savings Bank Deposit account.
8. Cheque Book
Cheque books are not normally issued to the minors. However, the
guardian will be supplied with the cheque book as per the business rules. Guardian while issuing
the cheques in the account should issue the cheques as under:
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For Master ABC
SIGNATURE
Father and Natural Guardian
Mother and Natural Guardian
Legal Guardian
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Students over the age of 12 years, who are authorised to operate the
account, will be provided with cheque books and the withdrawal is restricted to
self only
through cheque book / withdrawal slip. The cheque books issued to the
minor in such cases will be marked as “ONLY SELF WITHDRAWAL PERMITTED”.
9. Sweeping facility
There is a facility to transfer the credit balances in the account in
excess of Rs. 10,000/- in multiples of Rs. 5,000/- as term deposits. For this facility the Guardian
/ Applicant should provide a standing instruction in a specified format (available in the branch on
request) to the bank indicating the period for which such deposits are to be opened.
The term deposit accounts opened
under this arrangement will be governed by the Bank’s “V-Plus Term Deposit” Scheme.
The rate of interest on the term
deposit will be the prevailing rate on that date. A pass sheet will be issued with the
details of the deposits.
10.
Education Loans
Education loan will be extended
to all the eligible student account holders as per the Bank’s Education Loan scheme. The Bank may,
on request, consider concession in the rate of interest on Education Loans sought by the account
holders under the Education Loan Scheme of the Bank, if the
‘V–
GenU
TH’ Savings Bank account is maintained and operated to the satisfaction
of the Bank for a minimum period of 5 years, prevailing at the time of sanction
11.
Free Add on Card and ATM Card
Add on Credit Card and ATM Card
will be provided to the minor wards over the age of 12 years on request and instruction from the
Guardian. The Guardian will be responsible to meet the bills and charges arising out of
use of such cards. The bill amount and other charges, if any, will be debited to the Guardian’s
account.
12.
Tax on interest earnings - Deduction at Source.
Interest earned on credit balances in
‘V–
GenU
TH’ Savings Account is presently free from TDS provisions. Interest earned by
the account holder on various term deposits held in the branch under the sweeping facility linked
to this account as well as on other term deposits held, is liable for Income Tax. The bank
will deduct the Tax at source on such interests earning as per Income Tax Regulations. The
Certificate in respect of the taxes so deducted will be provided to the account holder. If the
account holder is not likely to be subject to tax on such interest earnings, he/she should submit
the prescribed Form No: 15G / 15H annually to the bank.
13.
Overdraft
NO OVERDRAFT
will
be allowed in the account by the bank. But Guardian will be
responsible to repay any incidental overdraft arising in the account on account of use of the Add
on Credit card / ATM card or for any other reason. Such overdrafts are to be regularised
immediately. The overdraft will also attract interest at rate applicable to temporary overdrafts.
If such overdraft remains unadjusted, the Bank will initiate recovery action.
14.
Other facilities
a)
Nomination facility is available.
b)
Internet banking facility can be provided to the guardian on
request.
c)
Instruments payable at outstation centres and drawn in the name of
the ward up to an aggregate amount of Rs.25,000/- per annum will be collected free of charges. But
out of pocket expenses, if any, will be recovered separately.
d)
After the minor attains majority, his/ her request to the bank for
other loan facilities like vehicle loan, housing loan, etc., will be considered on priority basis
under the Bank’s respective loan scheme and subject to eligibility. Such credit facilities will be
extended on the rates of interest applicable for such loans and additional concessions other than
those built into respective schemes are not available.
e)
Transfer of funds from parent / guardian’s account in any branch of
Vijaya Bank to student’s account is at par.
15. All other rules and regulations as applicable to the Savings Bank /
V-Plus Term Deposit accounts are applicable to this scheme.
16. The Bank reserves it’s right to review at any time and details of
such changes will be placed in the Bank’s website indicating the date from which they will come
into effect . All transactions from the date of modification will be governed the modified
regulations.
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