MTS Nidhi Bachat Mitra

MTS Nidhi Bachat Mitra

Key Benefits:

• Product Nature : Overdraft facility in Savings Account secured by Pledge of Term Deposit
• Eligibility Criteria : Individuals eligible to open Savings Account singly / jointly and having attained the age of 18 years
• Minimum Amount : Savings Account: There shall be no minimum balance requirement for Savings Account, as such no service charges shall be levied towards maintenance of minimum balance.
  Fixed Deposit: Minimum amount of deposit accepted for the facility would be Rs10000/- and thereafter in multiples of Rs1000/- with a minimum period of 12 months and maximum period of 120 months.
• Maximum Amount : There shall be no ceiling on the maximum amount to be deposited as Fixed deposit and credit balance in Savings Account.
• Overdraft Limit : To the extent of 80% of Fixed Deposit with a minimum limit of Rs8000/- and maximum of Rs100000/- . Third party FDRs are not eligible under this scheme. FDRs issued by any MTS branch /NIDHI can not be pledged and accepted as security, as per extant guidelines of the NIDHI.
• Interest Rate : Fixed deposit: As per contractual rate, at the time of accepting deposit.
  Savings A/c : As per existing rules for credit balance in SB A/cs and for debit balance in Savings A/c 1.5% over Fixed Deposit rate with monthly rests and a minimum of Rs25/- will be charged during a month if overdraft facility is availed.
• Processing & Documentation Charge : 2%
• Security for Overdraft facility : Pledge of FDR duly discharged by the depositor. Letter of pledge of FDR ( LDOC -16 A)
• MTS conditions :
  • On due date of FDR the facility may be renewed at the request of the customer. In absence of any request, overdraft facility may be liquidated by appropriation of proceeds of the FDR after giving due notice to the borrower or alternatively FDR may be renewed under auto renewal facility and overdraft facility may also be renewed at revised interest rate linked with FDR, depending upon circumstances.
  • If the borrower fails to pay the interest in overdraft account and /or the accounts remains overdrawn for a quarter, NIDHI shall have right to cancel the facility, liquidate it by prepaying the deposit and appropriating proceeds thereof after giving due notice to the customer..
  • FDRs under MTS Suvidha will not be accepted under the scheme.
  • All the extant guidelines including KYC Norms will be applicable while opening Savings and FDR accounts.
  • Depositor may be given an acknowledgement having pledged the duly discharged FDR with the NIDHI.
  • Existing procedure shall be followed by the branched for premature payment of FDRs.
  • Nomination Facility shall be available the depositors for their Savings and Fixed Deposits Accounts.
  • The deposit accounts shall be transferable from one branch to an MTS branch of the NIDHI, together with overdraft facility, free of charge.