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Payment of interest
on Recurring Deposits - The interest on Recurring
Deposits will be calculated by the bank in accordance with the directions
advised by the Indian Banks' Association.
- The interest rates for recurring deposits will be
the same as the rate applicable for a simple Fixed Deposit.
- The interest on Deposits is compounded quarterly,
at the applicable rates.
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Payment of Installment
- The installment amount once fixed cannot be altered
at any later date.
- If more than one installment is overdue at the
time of payment, the paid installment, if sufficient to cover only
that one installment will be appropriated towards the first or earliest
installment overdue.
- Partial payment of installments will not be permitted.
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Lock in Period -
The Recurring Deposit account has a minimum lock-in period of one
month.
- In the case of premature closure within a month,
no interest shall be paid to the depositor and only his principal
amount shall be returned.
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Maturity -
Interest is paid only on maturity.
- The Deposit shall be due for repayment and shall
mature on completion of the contracted tenure, even if there are
installments still to be paid.
- The maturity amount mentioned on the Recurring
deposit confirmation advice is subject to the payment of all installments
on time
- In case of any delay in the payment of scheduled
installments, the maturity amount shall change due to application
of penal charges.
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Penalty on delay in payment
of installment - In case there is a delay
in the payment of any installment, the Depositor/s shall be liable
to pay penal interest at the rate of Recurring Deposit interest
rates (the contracted rate of interest at the time of booking of
the RD) and an additional 2% per annum or such other rate as may
be specified by HDFC Bank from time to time, for the actual period
of delay.
- The total penal interest chargeable to the Depositor/s
shall be recovered from the total amount of interest payable by
the bank and shall be recovered only at the time of maturity or
premature closure of the account, as the case may be.
- Penal charges will be calculated on a 30/360 day
basis.
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Overdue Installments
- If frequent defaults (non-payments) are observed
in monthly installments, and six installments fall in arrears, the
Bank reserves the right to close the RD account. The interest rate
applicable on such closed accounts will be as per the premature
withdrawal policy of the Bank.
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