FLEXI FIXED DEPOSIT

1.      PRODUCT & BENEFIT:

Flexi Fixed Deposit products offer liquidity in the shape of Savings / Current deposit funds as well as higher returns as are available on fixed deposit funds. Moreover, there is also an element of flexibility as the depositor can meet funds requirement without losing the interest, since transfer of funds to Savings / Current account is made available as an in-built arrangement whenever required by the depositor.  In nutshell, the scheme enables a depositor to get returns on his/her funds as a fixed deposit but at the same time retaining the character of liquidity which is available in Savings Banks/Current Account.

 2.  ELIGIBILITY:

The Scheme is made available at all CBS branches and customer will have to fulfil following conditions for its availment:

• a) Customer will have to open an operative Account (Savings or Current) under the Scheme (Flexi Fixed Deposit), if not maintaining one already. The Account Opening Form (AOF) shall continue to be the same as required for SB / CA. While obtaining Account Opening Form, the type of account will be marked as "FLEXI FIXED" on the AOF itself. The customer shall not be required to undergo formalities of getting issued separate fixed deposit receipts, whenever the funds are transferred from the Savings bank / Current account under the Auto Sweep.
• b) In addition to the Account Opening Form, a Letter of Undertaking (Annexure II) and acknowledgement for Rules & Regulations (Annexure III) for carrying out the request for the fixed component of Amount and its Periodicity will be obtained from the customer (Proformae enclosed).
• c) Resident Indian customers shall be eligible to open accounts under the scheme provided they maintain such account in Savings Bank/Current Account under specific category as detailed in Annexure I.
• d) Flexi Fixed Deposit accounts shall be opened either singly or jointly.
• e) To avail Flexi Fixed Deposit products, Staff, Ex-staff, Pensioners and Senior Citizens will have to maintain accounts under this scheme. However, concession in minimum balance requirement and penalty thereon for not maintaining minimum balance will not be available to these categories.

3.         MINIMUM AMOUNT OF DEPOSIT:

In case of new accounts, the initial deposit, as per the respective category under which the account is proposed to be opened, shall be the pre-requisite. In case of non-maintenance of minimum Average Quarterly Balance (as per Annexure I), penalty as specified against each category of Savings / Current account shall be levied in the account.

4.         PERIOD OF DEPOSIT:

A deposit under the scheme shall be accepted for a period of 90 days to five years in flexi saving accounts and for 15 to 45 days in flexi current accounts. By default, it is 90 days in flexi Saving accounts and 15 days in flexi Current accounts.

5.         PAYMENT OF INTEREST:

The amount invested in the scheme shall attract rate of interest prescribed by the Bank on domestic Term Deposits from time to time. Simple/ compounded interest shall be booked on quarterly basis but liquidation of interest will be as applicable for the respective scheme.

Staff / Ex-Staff and Senior Citizens will be entitled for additional rates in Flexi Fixed Deposits as applicable in Domestic Term Deposits (as applicable to the category of depositor).

As per the extant rules, no premature payment penalty is levied if the amount of Single Deposit is up to Rs. 5 lacs. As such the provision of premature penalty shall be applicable on the amount of reverse sweep in case the amount held in Flexi Fixed Deposit (from which reverse sweep is made) is more than Rs. 5 lacs. The remaining balance of the FFD will continue to earn interest as per normal rate till maturity.

6.         AUTO SWEEP (SWEEP - IN):

When the balance amount in FFD linked Savings Bank / Current account shall cross over the minimum balance, the excess, in multiple as applicable for different categories as per enclosed Annexure I, will be transferred automatically to Flexi Fixed Deposit account, for the time period as mandated by the depositor at the time of opening of account under the scheme.

7.         REVERSE SWEEP (SWEEP OUT):

Through reverse sweep facility, the amount lying in Flexi Fixed Deposit shall be available to the depositor whenever there is a requirement of funds in his / her / their operative account i.e. savings / current account. As such, whenever the depositor issues a cheque or uses ATM card and the available balance in his/her connected Savings/Current Account is not sufficient, Reverse Sweep will automatically withdraw the required amount from Flexi Fixed Deposit account and the remaining amount in FFD will continue to earn the same rate of interest, as agreed upon in the contract. In such event, the amount from flexi fixed deposit shall be transferred to his / her / their savings / current account by following the LIFO (last in first out) method.

However, the funds to be transferred as a reverse sweep to Savings Bank/Current Account will also meet the requirement of maintaining minimum balance.

8.         ISSUANCE OF PASS SHEET (STATEMENT) IN LIEU OF DEPOSIT    RECEIPTS:

In lieu of the regular Term Deposit Receipt, the Flexi Fixed deposit Pass Sheet shall be made available to the customers maintaining account under the scheme. A well established arrangement is already in place for generation and dispatch of this statement to the customers.  COPEC Secunderabad will issue pass sheet to the customers of all the branches of the Bank who maintain account under this flexi deposit scheme.  

9.         RESTRICTION ON LOAN:

No loan / OD in any shape shall be allowed against deposit held in Flexi Fixed Deposit Scheme.

10.       SB Smart Save modified as follows:

•1.      Threshold for transfer to Term Deposit from Savings deposit to be raised from Rs10,000 to Rs 25,000/

• 2. Average quarterly balance to be increased to Rs25,000/
• 3. RTGS/NEFT to be allowed at 50% concession.
• 4. Speed Clearing with no charges ( Charges by Clearing House to be collected)
• 5. Free ECS debit and Credit
• 6. Instant credit of outstation cheques upto Rs25,000.
• 7. At Par collection of Government Cheques.
• 8. Free SMS facility
• 9. Free cheque books
• 10. Accident insurance coverage upto Rs1,00,000/.
• 11. Minimum sweep out amount to be raised from Rs 1,000/ to Rs2,000/
• 12. Sweep in amount is fixed at Rs.5,000/-

Saving Smart Save Gold modified as follows.

• 1. Threshold for transfer to Term Deposit from Savings deposit is Rs 50,000/
• 2. Average quarterly balance to be Rs50,000/
• 3. Free RTGS/NEFT ( Charges by RBI to be collected).
• 4. Speed Clearing with no charges ( Charges by Clearing House to be collected)
• 5. Free ECS debit and Credit
• 6. Instant credit of outstation cheques upto Rs50,000.
• 7. At Par collection of Government Cheques.
• 8. Free Non-cash Transactions under ABB
• 9. Free SMS facility.
• 10. Free Cheque books
• 11. Accident Insurance Coverage upto Rs2,00,000/
• 12. Minimum sweep out amount to be raised from Rs 1,000/ to Rs2,000/
• 13. Sweep in amount is fixed at Rs.5,000/-

Current Account Premium Gold

• 1. Threshold for transfer to Term Deposit from Current deposit raised from Rs1,00,000/ to Rs 2,00.000/
• 2. Average Quarterly Credit Balance increased to Rs.2,00,000/-
• 3. No Charges for Cheque Books
• 4. Maximum Limit for Cash Transactions-ABB (Receipts & Payments combined) - Rs.1 Lac
• 5. No Charges for Cash Transactions up to Rs.50,000/- Above Rs.50,000/- - Irrespective of location - Rs.0.75 per thousand or part thereof for full amount with a minimum of Rs.25/-
• 6. Non Cash Transactions - No Charges for transactions up to Rs.2,00,000/-
• 7. NEFT/RTGS 50% concession
• 8. Free SMS facility

SAVING SMART SAVE SILVER scheme is discontinued w.e.f. 01.10.2009 and the existing customers are requested to opt for either SB Smart Save or Saving Smart Save Gold and avail Concessions being offered in these schemes. For existing customers, the scheme will be closed w.e.f. from 01.11.2009.

Annexure I

FLEXI FIXED DEPOSIT SCHEME

## Auto Sweep shall take place only after the cut off level of Rs. 25000/- in linked Saving Smart Save Account i.e. having a balance of Rs. 25000/- or above the system will allow Auto Sweep in multiple of Rs. 5000/-. However, penalty for not keeping minimum balance will be applicable only if the Minimum Average Quarterly Balance falls below Rs. 25000/-.

$ Plus Service Tax as applicable

The modifications/ additional concessions/ features  in the flexi deposit schemes will be effective from 01.10.2009 for all new/ fresh accounts to be opened.

 In case of existing accounts all changes will be effective from 1.11.2009 after a notice period of 1 month.

                                                                        Annexure II

ORIENTAL BANK OF COMMERCE

(A GOVT. OF INDIA UNDERTAKING)

Branch___________________

FLEXI FIXED DEPOSIT - UNDERTAKING

Reg: my /our application for Flexi Fixed Deposit (FFD) Account

• 1 I / We authorise the Bank to open an operative account under................................................scheme and to carry out all transactions under the FFD Scheme through this account.
• 2 I / We authorise the Bank to carry out all transactions under the FFD Scheme through my existing Smart Save / Smart Save Silver/ Smart Save Gold/ Current Account Premium Gold account no. ......................
• 3 I / We undertake to maintain a minimum average quarterly balance as prescribed in the Scheme or as may be prescribed by the Bank from time to time, in the operative account, failing which I/We undertake not to hold the Bank responsible for any financial / reputation loss that might arise in an unlikely event of dishonoring the cheques drawn by me / us under the Scheme, without any prior intimation to me.
• 4 I / We authorise the Bank to open Term Deposits in my / our names, in multiples of Rs. 5000/- / 25000/-, for a minimum period 90 days / 15 days /.........months /........years, whenever there is an excess balance above the prescribed Minimum Balance under the FFD Scheme.
• 5 In case the balance in the operative account falls below the stipulated minimum, or is overdrawn, the Bank at its discretion may levy a charge as it considers fit. In case of the account falling below the minimum or more than 2 occasions the Bank may close the operative account without reference to me / us.
• 6 I / We authorise the Bank to close my Flexi Fixed Deposits to the extent of the debit balance and to meet the requirement of maintaining minimum balance in my / our operative account (to the nearest multiples of Rs. 1000/- or 25000/-) on account of honouring the cheques drawn by me / us, using LIFO (last in first out) method.
• 7 I / We understand that as per the scheme no TDRs / acknowledgements will be given by the Bank for the deposits created under the scheme.
• 8 I / We authorise the Bank to mark lien on the deposits for any banking facility extended to the undersigned and/ or to set-off against the dues that may be payable to the Bank.
• 9 In the absence of rollover instructions to the contrary, the Bank is authorised to rollover the deposit/s for similar period until further notice.

Name................................                                            Signatures...............

Account no. SB/CA...............

Date .................................

Annexure III

RULES AND REGULATIONS FOR FLEXI FIXED DEPOSIT SCHEME

• 1. Flexi Fixed Deposit scheme is a product/ scheme where money over the threshold limit is automatically transferred (auto sweep) from operative account (saving or current account) and invested in Bank's fixed deposit scheme. Fixed deposit is linked to the operative account. Linked fixed deposit gets broken automatically (reverse sweep) to meet the shortfall arising on account of cheques issued, ATM withdrawals, etc.
• 2. The account holder/s has/ have to maintain a minimum quarterly average balance as per rules of the Bank.
• 3. Auto Sweep will happen in multiple of Rs. 5000/25000 as applicable.
• 4. Reverse Sweep will be in multiple of Rs. 1000/25000 as applicable.
• 5. The scheme is applicable to resident Indian only.
• 6. Normal saving / current account transactions can be carried out.
• 7. Charges per quarter would be levied for non maintenance of minimum average quarterly balance in the linked saving account or Current Account as per Bank's rules from time to time.
• 8. Linked FFD will be renewed automatically.
• 9. Default period of linked deposits opened under the scheme will be 90 days in SB & 15 days in CA or any other period stipulated by the account holder/s whichever is higher.
• 10. Such deposits will carry rates of interest as revised by the Bank from time to time for domestic Term Deposits.
• 11. Deposits falling due will be renewed from time to time for further period of 90/15 days or any other period as stipulated by the account holder/s (whichever is higher) under the auto renewal scheme. The interest payable on such deposits will be at the rate applicable on such deposits of the Bank, for the respective period, prevailing as on the date of such renewal.
• 12. The Bank will renew the deposit in multiple of Rs. 5000/- / 25000/- subject to Tax Deduction at Source (TDS) wherever applicable, unless instructions to the contrary are received from the account holder/s.
• 13. The Bank is authorised to link all fixed deposits made by the Bank under the auto sweep or auto renewal facility, automatically to the operative account under the Flexi Fixed Deposit Scheme. If the account holder/s desire/s to link any deposit opened by any other means, separate instructions to that effect need to be given.
• 14. The Bank will issue Pass Sheet in lieu of fixed deposit receipts opened/ renewed under the scheme from time to time.
• 15. No overdraft / loan will be provided against the security of fixed deposits made under the flexi fixed deposit scheme.
• 16. The fixed deposits under the scheme will be in units of Rs. 5000/- / 25000/- each.
• 17. In case the account holder/s issue/s cheques on the linked operative account or draw from the ATM or the Bank passes debits in the normal course for recovering dues from the account holder, under the reverse sweep facility, the Bank is authorised to honour these cheques / debits / ATM withdrawals even if there is a shortfall, provided the shortfall is not more than the aggregate deposits that the account holder may have with the Bank under this scheme and prematurely or otherwise encash the deposits in units or Rs. 1000/- or 25000/- (as applicable) and multiples thereof to meet the shortfall. If the account holder has more than one deposit under the scheme, the last deposit made under the scheme will be used first (LIFO) to meet the shortfall and if this is not adequate, the deposit made prior to the last deposit will be used and so on and so forth, until the shortfall is fully met.
• 18. The term deposit linked under flexi fixed deposit scheme will be under unconditional lien to the Bank and the Bank will have a right of set off against the dues payable to the Bank. For this purpose, the Bank is within its rights to close the deposit prematurely at its discretion, by applying penal rate of interest. Bank's lien will have priority over any obligation to pay a cheque drawn on the linked saving / current account.

Name of depositor                                                                                                             

Account number CA/SB .....................                                                                         signatures

Date: ...........................

Note: The account holder should advise he Bank in writing on any change in residential status.

The above mentioned terms and conditions are subject to change / modification without prior notice.

Annexure IV

Some important definitions / options under Auto Sweep (Sweep in)

• Auto-Credit Period - The period for which the FFD is to be created called Auto Credit period. It may be by default or at the option of the depositor. By default it is 90 days in saving accounts and 15 days in current account.

• Auto-Credit Frequency - The frequency at which the FFD creation to be attempted during End of Day operations e.g., Daily, Weekly etc. Presently the default set up is Daily.

• Next Auto Credit Date - The next date on which the Auto Credit will be attempted depending upon the clear balance available in operative account.

• Minimum balance in operative account - This will be updated depending upon the Auto Credit Frequency and it should not be less than the minimum balance mentioned at scheme level of the operative account.

• Inflow multiple amount - This is the amount in "multiples" of which the FFD is created. At the end of the day or at the Auto Credit Frequency opted by the customer, if the operative account has a credit balance in excess of the minimum balance as specified at account level, system shall automatically open term deposits in multiples of Rs. 5000/- or 25000/- as the case under the schemes.

• Option for stopping sweep - In an FFD operative account, where there is a credit balance qualifying for sweep-in to FFD, and for any reason the customer requests the Bank not to sweep-in the amount, the same may be honoured. This can be done by modifying suitably the "Next Auto Credit Date" in the FFD details screen through ACM Option.

• Auto renewal facility - All the FFDs created under the FFD scheme are automatically renewed on maturity. FFDs are automatically renewed by the system for the period as specified at the scheme level by default, or as may be modified at the option of the customer.

• Auto renewal period - This is the period for which FFD is renewed under the scheme. In the absence of renewal instructions, the renewal period will be rolled over for a similar period. The FFDs opened under the scheme are by default automatically renewed by the system for a further period as specified in the account level as "auto credit period".

• Option to modify auto renewal instruction - The customer's request for cancellation of auto renewal instruction can be honoured. This can be done by modifying "auto renewal" flag as "N" for the respective FFD account.

 ANNEXURE - V

SOME INMORTANT DEFINITIONS / OPTIONS UNDER REVERSE SWEEP (SWEEP OUT):

• AUTOMATIC CREATION OF TOD - While posting the debit transaction in the Operative account, if available balance is insufficient, the system automatically allows a TOD (with regularization day as the "same day") to the extent of the shortfall, subject to the effective available amount. (The TOD shall be adjusted from FFD at End of the Day).

• CARVING OF FFD AMUNT - After automatic creation of TOD, system automatically carves the available amount in the FFD account to the extent of the TOD allowed in the operative account.

• REGULARISING OF TOD & OUTFLOW MULTIPLE - During EOD, the FFDs will be cancelled in full or part, in multiples of Rs. 1000/- or 25000/- (as detailed in Scheme) using Last in First Out (LIFO) method and the TOD created in the operative account is automatically regularized by debiting the respective FFD (Reverse sweep).

• OUTFLOW OF MULTIPLE AMOUNTS - This is the amount in multiples of Rs. 1000/- or 25000/- in which FFD is transferred to the operative account during reverse sweep.

• OPTION TO DISCONTINUE REVERSE SWEEP - Where the customer requests the Bank for discontinuance of reverse sweep, the same may be honoured. This can be done by re-setting the automatic debits flag as "N" under ACM option. Thereby, available amount in FFD will be proportionately reduced or reduced to NIL at the option of the depositor.

Annexure - VI

ORIENTAL BANK OF COMMERCE

Corporate , Strategy & PLANNING  DEPARTMENT

HEAD OFFICE NEW DELHI

NOTICE

The Bank Announces Modification in the following Schemes  of the Bank

w.e.f 01.10.2009 with new Features/Concessions

SB Smart Save modified as follows:

• Threshold for transfer to Term Deposit from Savings deposit is raised from Rs10,000 to Rs 25,000/
• Average quarterly balance to be increased to Rs25,000/
• RTGS/NEFT to be allowed at 50% concession.
• Speed Clearing with no charges ( Charges by Clearing House to be collected)
• Free ECS debit and Credit
• Instant credit of outstation cheques upto Rs25,000.
• At Par collection of Government Cheques.
• Free SMS facility
• Free cheque books
• Accident insurance coverage upto Rs1,00,000/
• Minimum sweep in amount is Rs5,000/- & sweep out is Rs.2,000/-

Saving Smart Save Gold modified as follows:

• Threshold for transfer to Term Deposit from Savings deposit is Rs 50,000/
• Average quarterly balance Rs50,000/
• Free RTGS/NEFT ( Charges by RBI to be collected).
• Speed Clearing with no charges ( Charges by Clearing House to be collected)
• Free ECS debit and Credit
• Instant credit of outstation cheques upto Rs50,000.
• At Par collection of Government Cheques.
• Free Non-cash Transactions under ABB
• Free SMS facility.
• Free Cheque books
• Accident Insurance Coverage upto Rs2,00,000/
• Minimum sweep in amount is Rs5,000/- & sweep out is Rs.2,000/-

Current Account Premium Gold modified as follows.

• Threshold for transfer to Term Deposit from Current account is raised from Rs1,00,000/ to Rs 2,00.000/
• Average Quarterly Credit Balance Rs.2,00,000/-
• No Charges for Cheque Books
• Maximum Limit for Cash Transactions-ABB (Receipts & Payments combined) - Rs.1 Lac
• No Charges for Cash Transactions up to Rs.50,000/- Above Rs.50,000/- - Irrespective of location - Rs.0.75 per thousand or part thereof for full amount with a minimum of Rs.25/-
• Non Cash Transactions - No Charges for transactions up to Rs.2,00,000/-
• NEFT/RTGS 50% concession
• Free SMS facility
• Further, SAVING SMART SAVE SILVER Customers Please note :

• All other Service Charges as applicable as per policy of the bank in force.
• We request you to provide the minimum balance as applicable/ revised in your current/ savings bank account by 31.10.2009

General Manager (CS&P)