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FAQs about Shriram City Fixed Deposit

What are the schemes available for deposits?
Cumulative as well as Non-Cumulative schemes are available for deposits.
What is the difference between a Non-Cumulative deposit and a cumulative deposit?
In a 'Non- Cumulative scheme' the interest is payable on a periodic basis. In 'Cumulative deposit scheme', the interest is payable at the time of maturity along with the principal.
What is the minimum deposit amount for Cumulative deposit & Non-cumulative deposit schemes?
Deposit will be accepted in multiples of ₹ 1,000/- subject to a minimum amount of ₹ 5,000/- for cumulative deposit and ₹ 5,000/- for non-cumulative deposit.
What are the interest frequencies available and modes by which the interest is paid?

We have Monthly/Quarterly/Half Yearly and Yearly option for payment of interest. The interest is directly credited to the bank account via NEFT (National Electronic Fund Transfer)

When will the interest be credited in Non-cumulative scheme?

In a Non-cumulative scheme, the interest will be credited on the Last day of every month in case of Monthly, Last day of March/June/September and December in case of Quarterly, Last day of March and September in case of Half-Yearly and Last day of March in case of Yearly. The first interest will be paid on the last day of the subsequent month in which the FD is processed, E.g. If the customer has initiated the FD on 20th, March and has requested for a monthly interest, the same will be paid on the subsequent month-end that is 30th April.

What is the range of tenure available for fixed deposits?
You can open a fixed deposit with the Company for a minimum tenure of 12 months to a maximum tenure of 60 months.
How do I tender the amount for the deposit? Is there a prescribed form for making deposit?

The amount can be tendered by means of A/c payee Cheque/DD issued in favour of SHRIRAM CITY UNION FINANCE LIMITED. An application for the deposit should be made on the prescribed form. [Click here to download form]

Under what regulations, the fixed deposits accepted by NBFCs are governed?
The public fixed deposit schemes of NBFCs are subject to the directions issued by the Reserve Bank of India under Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016.
Who can invest in fixed deposits with SHRIRAM CITY UNION FINANCE LIMITED?
Individuals, Company, Partnership Firms, Hindu Undivided Family (HUF), Trust and Foundations, Unincorporated Associations or Body of Individuals
Can a power of the Attorney (POA) holder sign the deposit application form?
Can a deposit be made in the name of minor alone?
Yes. You can make a deposit in the name of minor provided such minor is represented by his natural or legal guardian and the Application Form for the deposit is signed by the natural/Legal Guardian, on behalf of the minor. All communication in relation to the deposit shall be addressed to the guardian.
Can investments be made in joint names?
Yes, Maximum of three people can maintain a joint Fixed Deposit which would be payable to "Anyone or Survivor" or “First or Survivor/s”. In the case of “Anyone or Survivor”, on maturity, the deposit receipt can be discharged by anyone of the depositors. However, for a premature payment and loan all the depositor’s signatures are required. If the depositor is minor, only natural or legal guardian can be the joint holder.
What is 'Nomination'?
Through nomination facility, the depositor may nominate a person to whom the Company has to pay the deposit amount in case of death of the depositor. For availing this facility, you should fill the nomination details in the appropriate space provided in the application form.
How do I change my correspondence address?

You need to send Address proof along with Address/Contact Change Request Letter in the prescribed format (Click here to download Requisition Form) to FD processing centre. On receipt of the details, the changes will be updated in our records within 7 working days.

How do I change my Bank Account details?

Customer would need to submit a duly signed application for the same (Click here to download Requisition Form) . Along with the application form, a valid ID proof copy, a personalized cancelled cheque (with name printed) is to be submitted. If cheque is not personalized, then bank account statement is needed. In case of corporate customers, a Board resolution for change in bank account details is to be submitted.

Can a Trust/Company invest in FD?

Yes, a Trust may invest in our deposits. If the trust is not registered OR not willing to be registered in future, a letter duly signed by Authorized Signatories stating the Trust is not registered & not willing to be registered in future is required. Please note SCUF is not registered U/S 11(5) of the Income Tax Act, hence Charitable Trust may invest in the FD of the Company at THEIR OWN RISK.

Please also note that all Trust investments are not exempted under the Indian Income Tax Act, 1961. There are different types of Trusts. Private trusts shall be treated like any individual for accepting deposits in our Company. Some Trusts get specific tax exemption/lower tax rate on investments applicable to our Company, so such specific exemption letter from the Income Tax Department is needed along with the investment.

However, Charitable Trusts are those which have to register themselves u/s -12AA of the Income tax Act 1961. The income of such trusts is completely exempt from income tax provided that they strictly comply with the provisions of Sections 11 to 13 of the Income tax Act. One of the conditions prescribed by the Act is in respect of the forms and modes of investing or depositing the funds as per Sec.11 (5). Deposits and debentures of Shriram City Union Finance Limited do not come under the various avenues of investment mentioned in Sec.11 (5). Any charitable trust which does not invest the funds in any form and mode mentioned in that Section will lose the exemption granted to them.

What happens if the prevalent interest rates come down or goes up?
There will be absolutely no changes for the existing deposits as we are obliged to pay the contracted rate till its maturity as per the current rules. The revised rates will apply only to fresh deposits and renewals made on or after the date from which the new rates are applicable.
When is Income Tax deducted at source from interest?
If the estimated annual interest paid/credited or likely to be credited/paid on the deposit/s exceeds or is likely to exceed ₹5,000 /- during the financial year (i.e. year 2020-21), it is obligatory on the part of the deductor of tax to deduct income tax at source. However, to avoid such deduction of Tax, the investors can furnish self-declaration in Form 15G/H or by submitting the Exemption certificate from the respective Income Tax Authority for every financial year.
What is Form 15G and Form 15H and where do I get it from?
Form 15G/15H is a self-declaration by the depositor which can be obtained from the company or can also be downloaded from the company website   15G (For Depositors below 60 years of age) / 15H (For Depositors whose age is 60 years and above) .
What is the difference between Form 15G and the Form 15H?
Declaration in the Form 15G can be made by an individual or a person (not being a company or firm). Hence, a company or Firm cannot submit declaration in the Form 15G or in the Form 15H. Form 15G is meant for Resident Individual who is below 60 years of age. 15H is meant for Senior Citizens, i.e. Resident Individual who is of 60 years of age or more at the time of placing the deposit.

    Form 15G:

    • Eligibility for 15G in case of individuals:-

      The Individual should be less than 60 years of age at the time of furnishing the declaration. The total income during the financial year (i.e. year 2020-21) should not exceed the basic exemption limit as per income tax, i.e. ₹250,000/-. If the total income during the financial year exceeds or is likely to exceed ₹ 250,000/- then the individual cannot submit Form 15G.

    • Eligibility for 15G if in case of persons other than Individuals:-

      15G can be submitted by a HUF, Association of persons, Body of individuals & Artificial Juridical Persons, if the total income during the financial year (i.e. year 2020-21) does not exceed the basic exemption limit as per the income tax, i.e. ₹ 250,000/-.

Is it not enough to furnish the Form only once at the time of placing the deposit?
No. Since there may be changes in the Income Tax Laws, the Form 15G/H is required at the beginning of each financial year or at the time of deposit, wherever applicable.
What type of certificate do you get for the Tax deducted at source and how is the certificate generated?

TDS certificate in Form 16A will be generated by the company from the TDS Centralized Processing Cell portal website of TDS Reconciliation Analysis and Correction Enabling System (("TRACES") and the same will be authenticated by means of a digital signature. TDS certificate in Form 16A are generated quarterly on the basis of details provided in the quarterly TDS statement filed by the deductor of Tax in the TIN (Tax Information Network). For the tax deducted at source, tax deduction certificates in the prescribed Form 16A giving details of the tax remitted to the Govt. etc. will be sent on a quarterly basis if the deposit is under the quarterly scheme, half-yearly basis for deposit under half-yearly scheme and at the end of the year in case of Yearly scheme and cumulative deposits.

What will be the address printed on the TDS Certificates?
The address printed on the TDS certificate will be the address registered with Income Tax Department at the time when you had made an application for PAN. If your current communication address is different from the address given for PAN card application, then please change the address through NSDL or UTIITSL.
When will the TDS certificate be dispatched?

  • Q1- Last week of July
  • Q2- Last week of October
  • Q3- Last week of January
  • Q4- Last week of May

Can there be more than one customer folio for one depositor?
No, all deposits held in the same name and same PAN, are required to be clubbed together for the purpose of calculation of income tax.
In case there is an urgent need of money, is premature withdrawal of deposit receipt allowed?

According to the Direction of the RBI, a deposit receipt cannot be prematurely closed before three months from the date of Deposit/ renewal except in case of death of depositor.

What is the process of taking premature withdrawal?
The premature withdrawal of any FD is allowed at the sole discretion of the company. For seeking prematurity withdrawal original deposit receipt duly discharged on ₹ 1/- revenue stamp along with a request letter for prematurity withdrawal and a cancelled cheque leaf should be submitted.
Can prematurity payment be paid favoring the second/third Depositor?
No. Premature payments will be made to the first depositor only.
What is the significance of furnishing Permanent Account Number?
As per the provisions of income tax, every person receiving any sum or income from which tax would be deducted should furnish his PAN to the person deducting the tax. Please note if PAN is not furnished then form 15G/H or any other Exemption Certificate submitted will be invalid and tax will be deducted at the higher rate as applicable.
Will the deposit be paid back in cash?
No. Deposit will be paid back only to the corresponding bank account updated in the records of SCUF
Can you send the payments directly to the depositor's bank?
Yes. The payment can be sent directly to the depositor’s bank.
How is the FD renewed?
Subject to the FD scheme being open, the deposit may be renewed on maturity by submitting a duly filled fresh FD Application Form. It is necessary that the fresh FD Application Form should be submitted along with the duly discharged old FD receipt with revenue stamp of requisite value. The renewal will be subject to the terms and conditions of the FD scheme as applicable on the maturity date of the old deposit.
Is FD transferable?
No, FD is non- transferable.
Will you allow a loan on deposit? What is the rate of interest chargeable for loans?
Loan may be granted against Deposit up to 75% of the deposit amount. Loan will be given to any depositor who has live FD in our company which is more than 3 months old. The FDR will be marked with a lien against the release of the loan. However, granting of a loan will be at the sole discretion of the company. No loan will be granted against Minor. The Loan interest rate is two percent points above the interest rate payable on the deposit.
What if one loses the FD Receipt / Interest warrant?
In the event of loss of the Fixed Deposit Receipt / Interest warrant, the Company should be immediately informed about the loss. The Company may issue a duplicate Fixed Deposit Receipt / Interest warrant, subject to non-encashment of the original instrument, upon receipt from the depositor a 'letter of loss of instrument' and an Indemnity Bond in the prescribed form to its satisfaction and after compliance with such other formalities as may be required by the company.
If legal disputes arise, what is the resolution mechanism?
Disputes, if any, arising in connection with SCUF FDs, will be subject to the jurisdiction of the Court at city of Chennai.
If the sole depositor dies, what are the documents required?
An attested copy of Death certificate, Term Deposit Receipts, Will or testamentary disposition, if any, or an attested copy of Legal Heirship Certificate issued by a Tahsildar /corporations.
Do you accept NRI deposits?
No, Fixed Deposits from NRI’s are discontinued with effect from 2nd January, 2017.
Can I apply online?
Yes, you can invest online. Open a fixed deposit now!