|| Salient Feature
| Permission & CRAR aspects
- 1.The Bank has obtained no objection from Central Registrar of Co-operative Societies, New Delhi and also Bank is eligible to raise the said issue in accordance with RBI Circular RBI/2016-17/7 DCBR. BPD. Cir No.
- 2.Amounts raised through LTD will be eligible to be treated as Lower Tier II capital of the Bank and will be treated as Long Term (sub-ordinated) Deposits.
||60,000 units of Rs.25,000 each amounting to Rs.150 Crores (Rupees One Hundred and Fifty Crores only). Issue and maturity amount is at par. LTDs will be issued on “ First come, first serve basis”.
|Maturity Period of LTD
||LTDs will have maturity of 6 (six) years from the date of issue.
|Rate of interest
||Rate of interest payable on LTDs is @ 8.00 % p.a, payable quarterly on 30th June, 30th September, 31st December and 31st March of every year, till date of maturity. Interest on matured LTDs is not payable after the date of
maturity. In case any interest or redemption payment due date(s) falls on any Sunday, Holiday or Public Holiday declared under Negotiable
Instruments Act 1881, the payment shall be made on the next working day.
|To be issued to
||LTD will be issued to Individuals (single or joint) excluding NRIs, registered organizations, private or public Ltd companies, partnership firms, registered
public trusts, HUF, co-operative societies (excluding Urban Co-operative Banks). LTDs can be issued to members and non members of the bank
including those outside the area of operation of the bank.
|Closure of issue of LTD
||LTD issue shall remain open till date of closure is notified by the Bank. The date of closure of LTD issue will be notified by the Bank on its website and
on the notice board of the Bank’s corporate and branch offices.Acceptance of LTD will be stopped by the Bank on receipt of the total amount of Rs.150 Crores (Rupees One Hundred and Fifty Crores only). However, the Bank
reserves right to accept lesser amount of deposit without giving any reason.
||LTD shall not be transferrable by endorsement.
||Nomination facility is available for LTDs.
|Loan against LTDs
||No advances /overdrafts shall be granted against security of LTDs and the bank will not recognize any lien, charge or other encumbrance on it.
||LTDs will not be eligible for DICGC cover.
|Seniority of claims
||LTD will be subordinated to the claims of depositors and others creditors but would rank senior to the claims of shareholders, including holders of
preference shares (both Tier-I and Tier-II, if issued in future). Among investors of LTDs included in lower Tier-II, the claims shall rank pari passu
with each other.
(a) LTDs will not have ‘put option’ or a ‘step up’ option.
(b) Bank reserves right to exercise ‘call option’ anytime after 5 years from the
date of issue in accordance with the guidelines of Reserve Bank of India.
||No pre-mature withdrawal/ closure for LTD is available.
Repayment of LTD at the time of maturity will be made subject to;
- (a) Banks CRAR is above the minimum regulatory requirement prescribed by
- (b) Impact of such repayment does not result in bank’s CRAR falling below the
minimum regulatory requirement prescribed by RBI.
|Nomination and Death Claim
||The Long Term Subordinated deposits holder/s may by signing a Nomination form nominate any person or persons to receive the Long
Term Subordinated Deposit from the Bank on the death of the sole Long Term Subordinated Deposit holder/death of the last surviving holder as
available under the provisions of the Law. If there is no person or persons so nominated, the Bank shall transfer the Long Term Subordinated
Deposits to any such person or persons as may appear as heir/s or legal representative/s of the deceased Long Term Subordinated Deposit
Holder/s, a sum representing the value of such deposit as ascertained by Bank on his/her executing a deed of Indemnity & application along with
the succession certificate to the bank. The bank shall thereupon be absolved from all liabilities in respect of such deposit.
||Tax will be deducted at source from the interest paid as per the provisions of Income Tax Act 1961, as applicable from time to time.
||LTD holders will not be eligible for any voting rights and /or other rights
which are exclusively available to the shareholders/members of the bank.
||All disputes / transactions are subject to the jurisdiction of the courts of the city of Mumbai.
||LTDs would be subject to adherence to the KYC guidelines.
||The Bank reserves right to reject incomplete application form without giving any reasons.