RBI/2009-10/140
UBD (PCB) BPD Cir No. 7 /13.01.000/2009-10
September 01, 2009
Chief Executive Officer of
All Primary (urban) Cooperative Banks
Dear Sir/ Madam
Payment of interest on Savings Bank Account on a Daily Product Basis –
UCBs.
Please refer to the Directive UBD.DC.102/V.1-86/87 dated June 25, 1987 in
terms of which UCBs were instructed that interest on savings deposits should be
calculated on the minimum balance to the credit of the deposit account during the
period from the 10th to the last day of each calendar month.
2. On a review, it has been decided that interest on balances in savings bank
accounts would be calculated on a daily product basis with effect from April 1,
2010. UCBs may ensure that they have the requisite infrastructure in place to
effect a smooth transition to the revised procedure.
Yours faithfully,
(A.K.Khound)
Chief General Manager
7

RBI/2009-10/140

UBD (PCB) BPD Cir No. 7 /13.01.000/2009-10, Dated: September 01, 2009

Chief Executive Officer of All Primary (urban) Cooperative Banks

Dear Sir/ Madam

Payment of interest on Savings Bank Account on a Daily Product Basis – UCBs.

Please refer to the Directive UBD.DC.102/V.1-86/87 dated June 25, 1987 in terms of which UCBs were instructed that interest on savings deposits should be calculated on the minimum balance to the credit of the deposit account during the period from the 10th to the last day of each calendar month.

2. On a review, it has been decided that interest on balances in savings bank accounts would be calculated on a daily product basis with effect from April 1, 2010. UCBs may ensure that they have the requisite infrastructure in place to effect a smooth transition to the revised procedure.

Yours faithfully,

(A.K.Khound)

Chief General Manager

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0 responses to “RBI circular on Payment of interest on Savings Bank Account on a Daily Product Basis – UCBs”

  1. Shivanaand.Tandsi says:

    Dear Sir
    I would like to know About payment about Variable D.A.This info is required for a manufacture co in Bangalroe.
    We are paying in arpil/ may every year VDA –
    But Yhe employees are asking Quarterly VDA increase,as and when the VDA declares quartely,
    We know its to be once in year.
    For this support we need notification no /rule book

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