Banks are required to freeze the accounts of the customers on getting the orders of the Government/Enforcement Authorities. What procedure should be followed by the bank in case a freeze term deposit gets matured during

The issue of such frozen accounts was examined in consultation with Indian Bank's Association (IBA) and banks were advised to follow the procedure detailed below in the case where during the currency of the orders of the Government/Enforcement Authorities the freeze term deposit gets matured:- A request letter to be obtained from the customer for renewal of the deposit on maturity requiring him to indicate in such letter the term or the period for which the deposit is to be renewed. In case the depositor does not exercise his option of choosing the term for renewal, banks may renew the same for a term equal to the original term/period of the deposit; No new receipt is required to be issued. However, suitable note may be made regarding renewal in the deposit ledger; Renewal of deposit may be advised by registered letter/speed post/courier service to the concerned Government Department under advice to the depositor. In the advice to the depositor, the rate of interest at which the deposit is renewed should also be mentioned; Where the overdue period does not exceed 14 days on the date of receipt of the request letter, renewal may be done from the date of maturity. If it exceeds 14 days, banks may pay interest for the overdue period as per the policy adopted by them, and keep it in a separate interest free sub-account which should be released when the original fixed deposit is released.