Policy on dealing with the request for pre-mature withdrawal of deposits approved by the Board of Directors vide Circular Resolution dated 27th September, 2008
Sahara India Financial Corporation Limited is a Residuary Non Banking Company (RNBC), is engaged in the business of acceptance of deposits from public in conformity with Residuary Non Banking Companies (Reserve Bank) Directions, 1987 (RNBC Directions) issued by Reserve Bank of India. In terms of the RNBC Directions, the deposits can be repaid before maturity only after twelve months from the date of acceptance and at the discretion of the RNBC on receipt of the request from the Hon’ble depositors, if so permitted by the terms and conditions of acceptance of such deposit. Further, RBI Act provides that the deposits should be repaid as per the terms and conditions of acceptance of deposits.
Objective of offering the facility for premature withdrawal of deposit
The idea behind making pre-maturity payment, albeit, after a lock in period of minimum one year is to provide liquidity to the depositor so that he should not face any hardship in case he needs his money back to fulfill his personal needs on whatever account like education of his children, marriage in family, meeting out hospitalization expenses for any kind of treatment, for purchase of things of his household needs or any other need to fulfill his requirement during rainy days and natural calamity or any capital investment. The facility has always been considered as conducive to the interest of the depositors. Keeping in mind the above imperative need to cater to the demands of the depositors, it may be observed that the facility of premature withdrawal of deposits is included in some of the deposit schemes , subject to the conditions specified in the relative deposit schemes.
Information to the depositors about the policy on dealing with
requests of depositors for premature withdrawal of deposits
The Company has been offering the facility of premature withdrawal of deposits in some of its deposit schemes since its inception by including the facility as part of the terms and conditions of the acceptance of deposits. Any depositor of the particular deposit scheme in which the facility has been included as part of the terms and conditions of acceptance of deposits, can avail of the facility and the Company entertains the request of any depositor for premature withdrawal of the deposits. However, it is clarified that the Company always keeps in mind the contingency and exigency of the needs of depositors for their seeking premature withdrawal of deposits.
As desired by Reserve Bank of India that the policy for premature repayment of deposits should be placed in public domain for information of the depositors of the Company, the format used by the Company for request by the depositor for seeking premature withdrawal has been revised to include the following purposes and the depositor may tick one of them:
- Household/ Personal or any other reason.
The Company would consider, on declaration basis, the requests in the above order of priority subject to the prescribed conditions in the deposit scheme and fulfillment of the requirement of the formalities. As the Company is solvent and has adequate assets to meet its obligations to each and every depositor as and when his claims arise, the Company would continue to entertain the request of any depositor for premature withdrawal of his deposits, in the interest of customer service.