Grameena bank launches deposit scheme

The Karnatak Vikas Grameena Bank has introduced a deposit scheme called 'Suvidha Flexi Deposit' on the eve of 2006.

According to KVGB chairman B S Surendra, the deposit scheme is quite different and much more flexible than other common deposit schemes.

Surendra said that in case of unforeseen eventualities necessitating an urgent need for funds, the depositor can withdraw a portion of the amount deposited without closing the account.

A minimum of Rs 10,000, and thereafter in multiples of Rs 1,000, will be accepted. There will be no restriction on frequency of withdrawals during the contracted period.

Contracted interest will continue for the rest of the amount even after a partial withdrawal and there will be no penal interest or service charges. Interest applicable to the scheme is the same as applicable to other term deposits.

Surendra said that the scheme will be ideal for individuals especially pensioners, institutions, trusts and government departments.