The Presidents/Chief Executives,
All Banks/DFIs.
Dear
Sirs/Madam,
DEPOSIT
MOBILIZATION SCHEMES
Please
refer to para 2(iv) of BPRD Circular No.29 dated 13th July,
1999 on the captioned subject.
2.
It has come to the notice of State Bank that the banks/DFIs
are indicating the expected rate of return in the account
opening forms and in the deposit certificates/instruments
etc. which they are unable to pay to their customers/account
holders, with the result that the dissatisfied customers
lodge complaints with the State Bank for intervening in
the matter and arranging payment of profit at the expected
rate of return. In order to avoid any confusion it is clarified
that while banks/DFIs may continue advertising their products
including the indicative expected rate of return, in terms
of provisions of para 2(iv) of BPD Circular No. 29 dated
13-07-1999, they shall not mention, in future, the expected
rate of return either on the account opening form or on
the deposit certificate/instrument itself.
3.
All other instructions on the subject shall remain unchanged.