- Benefits of Making FDs and RDs With Same Customer ID Number
- Required Documents to Open RD and FD Shriram City Existing Customer
The Reserve Bank of India (RBI) in its Monetary Policy Statement 2012–13 concerning Unique Customer Identification Code for Banks’ customers in India, directed the banks and NBFCs to promote unique customer IDs so that they can track activities of a customer, monitor every transaction in the account, improve the risk profiling, and help their banks to perform operations smoothly.
However, while UCIC has already been developed by some Indian banks, there is no unique number to identify a single customer across the organization in many banks. Therefore, as the initial step, banks are guided to initiate actions to allot UCIC numbers to all their customers while entering into any new relationships in the case of all individual customers. Similarly, a unique customer identification code may also be alloted to existing individual customers by end-April 2013.
Following the RBI rule, Shriram City clubbed the fixed deposit (FD) accounts and recurring deposit (RD) with existing customer ID with the same pan card.
Customers who do not have an urgent financial need can opt to renew the RD or re-invest the amount earned on the maturity of the recurring deposit into a fixed deposit. The third option is an auto refund. Finally, the total amount earned on the maturity of the RD is deposited into the existing customer’s account as specified in the application form submitted at the time of the deposit. It is the best and easiest way for closing and creating recurring deposits with existing Shriram City FD customers.
The RD can be converted into an FD, and the following is the conversion of RD procedure with the existing customer:
The linking of a customer’s multiple accounts by one customer ID is beneficial to both customers and the bank or financial institutions. It makes it easier for them to scrutinize all the transactions of the customer quickly and efficiently. Irregularities by the customer, such as exceeding the credit card limits and money laundering, can be controlled.
Shriram City links all FDs and RDs held by the existing customer with the same pan card with one customer ID. It helps its existing customers to keep an eye on their accounts and easily calculate the interest rate earned. The customer can have a complete picture of his/her finances on his/her internet banking homepage through which his/her financial standing is evident by a glance.
The duly filled FD or RD application forms should be submitted along with a self-attested photograph, self-attested proof of identification, self-attested proof of address, and a canceled cheque, which is mandatory.
Investments secure one’s future. Unless there is an urgent need, it is advisable to re-invest the returns from an RD either in one more RD or convert it into an FD. If the money is withdrawn and held in hand, one could feel the need to spend it on things he/she can do without.
Who should go with the option of FD?
There are many still around who cannot decide when to choose between FD and RD. If you are looking for a regular source, create an FD. Under this scheme, you will get pay-outs periodically. Moreover, the interest earned on FDs is higher and guaranteed.
How important is the customer ID number?
Customer ID number is a unique code issued by Shriram City as proof that you are their existing customer. The code is generally sent to you with a welcome message and kit when you open an account with the company. The code of each bank or financial institution is unique.
Who should go with an RD scheme?
Investors who are looking for small savings as unable to afford to make big investments in one go must start an RD scheme. Here, you are required to invest on a small portion monthly basis. You can even start with Rs. 10 to make an RD scheme.
What do you mean by FD and RD accounts?
Both FD and RD accounts are one of the safest investment options ensuring a guaranteed rate of return as promised. The FD account asks one to make a lump sum investment to get periodic pay-outs. Conversely, if we talk about RDs, it is offering you a lump sum at maturity.
How much interest could I earn on creating an RD?
The rate of interest one can earn on investing in an RD scheme varies from one financial institution to another. The interest amount is decided on the amount you are depositing in RD and the tenure. Higher is the investment and tenure, more will be the interest earned.