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 Finance clubbed the fixed deposit (FD) accounts and recurring deposit (RD) with existing customer ID with the same pan card.
What Services Does Shriram Finance Offer With One Customer ID?
1. Procedure for renewing RD
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 Finance FD customers.
2. Procedure for conversion of RD into FD
Suppose the depositor intends to renew the deposit on maturity. In that case, he/she could opt for the conversion to the fixed deposit feature at the time of the deposit by specifying the same on the duly filled application form submitted on the deposit initiation. This feature is advantageous to customers who do not need the money at the time of maturity. They will gain the additional benefits offered by Shriram Finance Fixed Deposit Scheme. Based on what is stated at that time in the application form.
The company will continue to auto-renew the money earned from RD on maturity into an FD account per instruction on the application form until and unless specified otherwise.
Shriram Finance will email the E-receipt of the FD to the registered email id of the first holder of the deposit.
The company will renew the RD if specified by the customer for the amount accrued on maturity after the TDS deduction.
3. Conversion of RD to FD using the same customer ID number:
The RD can be converted into an FD, and the following is the conversion of RD procedure with the existing customer:
- Wait for the maturity of the RD.
- Check if the conversion to FD is opted for.
- Check if the customer has instructed the company to convert his/her RD to an FD on its maturity.
- Make sure the customer has submitted a duly filled application for FD along with the discharged receipts of the matured RDs.
- On the maturity date of the RD, all terms and conditions of the FDs will be applicable.
- All deposits, irrespective of whether they are FDs or RDs, will be assigned one single customer fulio or customer ID number for the same customer having the same pan card. This facilitates the easy computation of TDS.
Benefits of Making FDs and RDs With Same Customer ID Number
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 Finance 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.
Required Documents to Open RD and FD Shriram Finance Existing Customer
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.
To book a new Fixed Deposit (FD), please log in to our Customer portal and follow the instructions to open an FD.
Conclusion
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.
Apply for Shriram Finance fixed deposits and recurring deposits to save more. We offer you to create a fixed deposit or recurring deposit with an existing customer ID number.
