Summary: Bank of India’s Harit Jama Yojana is a named 999-day rupee green term deposit. The bank’s official rate page, checked on 22 October 2026, showed 6.85% per annum for deposits from ₹1 lakh to below ₹10 crore, effective 1 June 2026, with an indicative annualised rate of 7.27% for the cumulative illustration. For deposits below ₹3 crore, the page states an additional 50 basis points for eligible senior citizens and 65 basis points for eligible super senior citizens. The scheme page confirms premature withdrawal, nomination and loan or overdraft availability, subject to bank rules. It remains a bank deposit: interest is taxable, TDS is only collection at source, and DICGC cover aggregates eligible principal and interest up to ₹5 lakh per depositor per bank in the same right and capacity.
- Verified 999-day product position on 22 October 2026
- Green label, deposit contract and use of proceeds
- Interest rate and payout interpretation
- Coupon rate versus annualised cumulative illustration
- Senior and super-senior additions
- Premature closure changes the return
- Nomination and loan or overdraft facility
- Income tax and TDS on the 999-day deposit
- Interest remains taxable even when TDS is not deducted
- Current threshold and declaration controls
- DICGC cover must be aggregated across Bank of India
- Booking and record checklist
- Frequently Asked Questions on BOI Harit Jama Yojana
- 1. What rate was verified for the 999-day deposit?
- 2. What are the senior-citizen rates?
- 3. Is premature withdrawal available?
- 4. Is the indicative 7.27% a guaranteed coupon?
- 5. Does green-deposit interest receive a special income-tax exemption?
- 6. Is every 999-day receipt insured up to ₹5 lakh separately?
- 7. Can the deposit support a loan or overdraft?
- Key Takeaways
Verified 999-day product position on 22 October 2026
Bank of India markets its Green Deposit Scheme under the brand name Harit Jama Yojana. The official product page identifies a fixed 999-day maturity and a deposit range beginning at ₹1 lakh and remaining below ₹10 crore. The official rupee term-deposit rate page showed 6.85% per annum with effect from 1 June 2026 and an indicative annualised return of 7.27% for the cumulative-deposit illustration. A depositor should preserve the rate confirmation generated at booking because a bank can revise the rate for new deposits without changing an existing deposit’s contracted rate.
| Verified term | Official position checked 22 October 2026 | Practical meaning |
|---|---|---|
| Tenure | 999 days | This is not a flexible-tenure generic FD |
| Deposit size | ₹1 lakh to below ₹10 crore | Retail and larger deposits share the named scheme band, subject to bank rules |
| Regular rate | 6.85% p.a. effective 1 June 2026 | Contracted rate should be confirmed on the receipt |
| Indicative annualised rate | 7.27% | Cumulative illustration, not a separate coupon |
| Senior addition below ₹3 crore | 50 basis points | Indicative rate becomes 7.35% if eligibility is accepted |
| Super senior addition below ₹3 crore | 65 basis points | Indicative rate becomes 7.50% if eligibility is accepted |
Green label, deposit contract and use of proceeds
A green deposit is accepted with the stated purpose of financing or refinancing eligible green activities under the bank’s framework. That label does not convert the account into a mutual fund, market-linked security or direct ownership interest in a project. The depositor’s legal claim is against Bank of India under the term-deposit contract. The depositor does not select individual projects and the interest rate is not represented as depending on the performance of a particular renewable-energy or environmental asset.
The product must also be distinguished from Bank of India’s ordinary callable term-deposit slabs and from its non-callable deposits. Harit Jama Yojana has its own 999-day tenure and published rate band. Comparing its rate with a one-year or three-year ordinary deposit without aligning tenure, payout mode and premature-closure assumptions can produce a misleading result.
Interest rate and payout interpretation
Coupon rate versus annualised cumulative illustration
The 6.85% figure is the stated annual rate for the 999-day green deposit. The 7.27% figure is described by the bank as an effective annualised rate and is indicative. The distinction matters because quarterly compounding in a cumulative deposit produces a maturity value that differs from simple multiplication of principal, rate and years. A periodic-payout option, where offered, will have different cash timing and may use the bank’s applicable discounting convention for monthly payment.
Senior and super-senior additions
For green deposits below ₹3 crore, the official rate page states an additional 50 basis points for eligible senior citizens and 65 basis points for eligible super senior citizens. This produces nominal rates of 7.35% and 7.50% respectively when the bank accepts the relevant age, residence, ownership and scheme conditions. Joint-deposit eligibility, first-holder status and documentary requirements should be confirmed before treating the additional rate as available.
Premature closure changes the return
The Bank of India scheme page states that premature withdrawal is allowed, making this a callable deposit rather than a locked non-callable product. Early closure does not normally preserve the contracted 999-day rate. The bank recalculates interest with reference to the actual period the money remained and applies its prevailing premature-closure policy. The official penalty page states nil penalty for deposits below ₹5 lakh that remained with the bank for 12 months or more, while a 1% penalty applies to deposits of ₹5 lakh and above withdrawn prematurely; other duration and product conditions must be read from the live policy.
The depositor should obtain a written premature-closure quote rather than estimate proceeds from the advertised rate. The relevant inputs are original booking date, actual run period, deposit amount, applicable rate for that run period on the booking date, penalty rule, interest already paid and tax already deducted. Where periodic interest has already been credited, a closure adjustment can reduce the final proceeds.
Nomination and loan or overdraft facility
Bank of India’s product page marks nomination as available and also states that a loan or overdraft facility is available. Nomination facilitates settlement but does not by itself determine beneficial succession rights under every personal law or dispute. A loan against the deposit creates a secured borrowing, and interest on that borrowing is separate from the interest earned on the deposit. The sanction margin, loan rate, documentation and right of set-off should be checked with the bank.
Income tax and TDS on the 999-day deposit
Interest remains taxable even when TDS is not deducted
Interest on an ordinary bank term deposit is generally taxable in the depositor’s hands under the applicable head and method of accounting. The green use of proceeds does not create a tax exemption. TDS is a collection mechanism, not the final tax. A depositor can owe tax even if annual interest remains below the bank’s TDS threshold, and can claim credit for tax actually deducted subject to the tax records and return.
Current threshold and declaration controls
For interest credited or paid by a bank to a resident, the current threshold framework distinguishes senior citizens from other depositors; the commonly applicable limits are ₹1,00,000 for a senior citizen and ₹50,000 in other cases, calculated on the prescribed aggregate basis. The depositor must verify the law applying to the relevant tax year and all deposits with the bank. Eligible residents may furnish Form 15G or Form 15H only when the statutory conditions are satisfied. A declaration does not make the interest exempt and an invalid declaration can create consequences.
| Tax question | Correct control | Do not assume |
|---|---|---|
| Is interest exempt because deposit is green? | No special exemption is stated for ordinary deposit interest | Green use equals tax-free return |
| No TDS deducted | Include taxable interest as required | No TDS means no tax |
| Form 15G/15H | Use only if eligibility conditions are met | Every depositor can stop TDS |
| Multiple BOI deposits | Aggregate under the applicable rule | Threshold applies separately to every receipt |
| TDS credit | Match certificate, Form 26AS/AIS and return | Bank deduction is final tax liability |
DICGC cover must be aggregated across Bank of India
DICGC’s official guide states that eligible deposits, including fixed deposits, are insured up to ₹5 lakh for each depositor in a bank in the same right and same capacity, with principal and interest counted together. The ceiling is not ₹5 lakh for each branch, each receipt or each deposit product. Savings, current, recurring and fixed-deposit balances in the same right and capacity at Bank of India are aggregated.
Different banks receive separate application of the ceiling. Accounts held in genuinely different rights and capacities can be treated separately under DICGC rules, while merely opening several deposits or using several Bank of India branches does not multiply cover. Loans and advances due to the bank may also be set off before the insured amount is worked out. Bank of India appears on DICGC’s insured-bank list checked for this article.
Booking and record checklist
1. Confirm the product name Harit Jama Yojana and the exact 999-day maturity on the application and receipt.
2. Verify the live rate, deposit amount band and senior or super-senior eligibility immediately before booking.
3. Select cumulative or permitted payout instructions only after understanding cash timing and annualised-return presentation.
4. Record nomination and review the distinction between nominee receipt and ultimate succession rights.
5. Read the premature-closure and penalty policy, especially the ₹5 lakh and 12-month distinctions.
6. Aggregate all eligible balances at Bank of India for a realistic DICGC exposure view.
7. Provide PAN and valid tax declarations where legally eligible; monitor interest and TDS across the tax year.
8. Preserve the deposit receipt, rate confirmation, mandate, nomination, tax certificates and maturity instructions.
Frequently Asked Questions on BOI Harit Jama Yojana
1. What rate was verified for the 999-day deposit?
The official Bank of India page showed 6.85% per annum effective 1 June 2026, checked on 22 October 2026, with an indicative annualised rate of 7.27%.
2. What are the senior-citizen rates?
For deposits below ₹3 crore, additions of 50 basis points for eligible senior citizens and 65 basis points for eligible super senior citizens imply nominal rates of 7.35% and 7.50%, subject to bank acceptance of eligibility.
3. Is premature withdrawal available?
Yes, the scheme page says it is available. Proceeds depend on the actual run period and the bank’s live penalty and recalculation rules; the 999-day contracted rate should not be assumed.
4. Is the indicative 7.27% a guaranteed coupon?
No. It is an indicative annualised cumulative return. The stated nominal rate is 6.85% and actual maturity proceeds depend on product and payout terms.
5. Does green-deposit interest receive a special income-tax exemption?
No special exemption was identified. Interest is generally taxable, and TDS does not determine the final liability.
6. Is every 999-day receipt insured up to ₹5 lakh separately?
No. DICGC aggregates eligible principal and interest across the same bank in the same right and capacity and applies the ₹5 lakh ceiling to that aggregate.
7. Can the deposit support a loan or overdraft?
The official product page states that a loan or overdraft is available. Sanction terms, margin, rate and set-off rights require separate confirmation from the bank.
Key Takeaways
- Harit Jama Yojana is a genuine named 999-day Bank of India green term deposit, not an investment fund or bond.
- The verified regular rate was 6.85% p.a. effective 1 June 2026; 7.27% was the indicative annualised cumulative figure.
- Senior and super-senior additions apply to eligible deposits below ₹3 crore subject to the bank’s conditions.
- Premature withdrawal is available but can materially change the interest calculation and attract the applicable penalty.
- Interest is taxable; TDS is not final tax, and DICGC’s ₹5 lakh ceiling aggregates principal and interest by depositor, bank, right and capacity.
Source Links
- Bank of India — Green Deposits Scheme / Harit Jama Yojana: https://bankofindia.co.in/term-deposits/green-deposits-scheme
- Bank of India — Rupee Term Deposit Interest Rate: https://bankofindia.co.in/interest-rate/rupee-term-deposit-rate
- Bank of India — Premature Closure Penalty: https://bankofindia.co.in/penalty-details
- Reserve Bank of India — Master Direction on Interest Rate on Deposits: https://rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=10296
- DICGC — Guide to Deposit Insurance: https://www.dicgc.org.in/guide-to-deposit-insurance
- DICGC — List of Insured Banks: https://www.dicgc.org.in/insured-banks
- Income Tax Department — TDS rates and interest provisions: https://www.incometaxindia.gov.in/w/tds-rates-1
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Disclaimer: This article is an independent educational summary of Bank of India Harit Jama Yojana information and related official materials checked on 22 October 2026. It is not a recommendation, ranking, solicitation, investment advice, tax opinion or assurance of availability, suitability, safety, return or maturity proceeds. Bank of India may revise rates, amount bands, age definitions, additional-interest conditions, payout conventions, premature-closure rules, loan margins, documentation, branch or digital availability and other terms for new deposits. The rate applicable to a depositor is the rate accepted by the bank on the booking date and recorded in the deposit contract, not merely a rate appearing in an article. The 7.27% figure is an indicative annualised cumulative illustration and should not be confused with the 6.85% nominal annual rate. Senior and super-senior additions require the bank to accept all eligibility conditions. Taxability, TDS, declarations and reporting depend on residential status, age, PAN, aggregate interest, applicable tax year, income, accounting method and current law; absence of TDS does not make interest exempt. DICGC cover is subject to the DICGC Act and scheme, aggregates eligible principal and interest across Bank of India in the same right and capacity, and does not protect amounts without limit or eliminate credit, liquidity, fraud or operational risk. Readers should verify the live bank pages, deposit receipt, tax provisions and DICGC position and obtain professional advice before acting. TaxGuru accepts no responsibility for any loss, reduced return, premature-closure adjustment, tax, TDS, penalty, insurance shortfall, succession dispute, loan set-off, documentation issue or decision arising from reliance on this article or later changes.
