Airtel Payments

Deposit Policy

July, 2016

Contents

1.1 Introduction 1 1.2 Interest payments 2 1.3 Settlement of dues in deceased deposit account 2 1.4 Insurance cover for deposits 2 1.5 Dormant accounts 3 1.6 Remittance Service 3 1.7 Redressal of complaints and grievances 3

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1.1 Introduction

One of the important functions of the Payment Bank is to accept deposits from the public for the purpose of financial inclusion and to enable the account holders to participate in the banking services for which the Payment Bank licence has been issued to Airtel Ltd. . The depositors and their interests form the key area of the regulatory framework for banking in and this has been enshrined in the Banking Regulation Act, 1949. This policy document on deposits outlines the guiding principles in respect of formulation of various deposit products offered by the Bank and terms and conditions governing the conduct of the account. The document recognises the rights of depositors and aims at dissemination of information with regard to various aspects of acceptance of deposits from the members of the public, conduct and operations of various deposits accounts, etc., for the benefit of customers. This document is a broad framework under which the rights of common depositors are recognized. While adopting this policy the Bank re-iterates its commitments to the individual customers.

Types of Deposit Accounts: -

While various deposit products offered by the Bank are assigned different names, the deposit products can be categorized broadly into the following types. Definition of major deposits schemes are as under: -

1) "Savings Deposits" means a form of Demand Deposit which is subject to restrictions as to the number of withdrawals as also the amounts of withdrawals permitted by the Bank during any specified period; 2) "Current Account" means a form of demand deposit wherefrom withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount and will also include other deposit accounts which are neither Savings Deposit nor Term Deposit;

As per the Licensing Guidelines on Payments , Bank is not permitted to accept Term Deposits. Further payments bank are restricted to holding a maximum balance of Rs. 100,000 per individual customer. However, payments bank can accept a large pool of money to be remitted to a number of accounts provided at the end of the day the balance does not exceed Rs. 100, 000.

The Bank before opening any deposit account will carry out due diligence as required under prevailing "Know Your Customer" (KYC) guidelines issued by RBI and the Bank’s internal policy on the same. The decision of the Bank shall be final, in the event the account opening application is not found suitable as per the relvant guidelines pertaining to KYC. The account opening forms and relevant material would be provided to the prospective depositor by the Bank touch-point. The same will contain details of information to be furnished and documents to be produced for verification and or for record. The Bank’s representative opening the account will explain the procedure/formalities and provide necessary clarifications sought by the prospective depositor when he/she approaches for opening a deposit account. For deposit products like Savings Bank Account and Current Deposit Account, the Bank may stipulate certain minimum/ average balances to be maintained as part of terms and conditions governing operation of such accounts. Failure to maintain stipulated minimum/ average balance in the account may attract levy of charges as specified by the Bank from time to time. Further, if the customer maintains end of day balance exceeding Rs. 100,000/- the Bank may chose to levy a charge for the excess amount maintained and also not pay interest for balance exceeding Rs. 100,000/-.

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For Saving Bank Account the Bank may also place restrictions on number of transactions, cash withdrawals, etc., for a given period. Similarly, the Bank may specify charges for various services offered to the customers. Such information shall be upfront dissemitated to the customer. The terms and conditions for operation of the accounts and schedule of charges for various services provided are made available on the website of the bank. Savings Bank Accounts can be opened for eligible person / persons and certain organizations / agencies (as advised by Reserve (RBI) from time to time). The amounts can be deposited/withdrawn from these accounts electronically by the customer and/or through the bank touch-point. The customers will be onboarded as per the bank’s KYC policy in line with master direction on KYC issued by RBI. The Bank is committed to providing basic banking services to unbanked / disadvantaged sections of the society. Banking services would be offered to them through the financial inclusion initiatives. Deposit accounts can be opened by an individual in his/her own name (status known as account in single name). Statements of the account can be generated by the customer through mobile app and internet banking. This is also made available at bank’s touch points and a nominal charge may be levied for the service. Nomination facility is available on all deposit accounts opened by the individuals.Nomination can be modified by the consent of account holder/s.. The Bank recommends that all depositors avail nomination facility. The nominee, in the event of death of the depositor/s, would receive the balance outstanding in the account as a trustee of legal heirs. The depositor will be informed of the advantages of the nomination facility while opening a deposit account. Any changes in charges will be made available to all depositors well in advance through the Bank’s web-site /registered e-mail /SMS on the registered mobile number of the account holder.

1.2 Interest payments

The bank disseminate interest rates on deposits to the customer through various channels (Website/email/SMS).Interest shall be paid on saving account at the rate specified by the bank on daily product basis.

1.3 Settlement of dues in deceased deposit account

If the depositor has registered nomination with the Bank; - the balance outstanding in the account of the deceased depositor will be settled to the nominne after the Bank satisfies about the identity of the nominee. In the absence of the nomination the bank follow the legally accepted procedure for settlement of claims.

1.4 Insurance cover for deposits

Our bank deposits are covered under the scheme of Deposit Insurance scheme offered by Deposit Insurance and Credit Guarantee Corporation of India (DICGC).

Each depositor in a bank is insured up to a maximum of Rs.100,000 (Rupees One Lakh) for both principal and interest amount held by him in the same right and same capacity.

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1.5 Dormant accounts

Accounts which are not operated for a continuous period of more than 2 years will be treated as a Dormant Account in the interest of the depositor as well as the Bank. The depositor will be notified of charges, if any, which the bank will levy on dormant / inoperative accounts. The bank may consider reactivating of such accounts on the request of the depositor after carrying out necessary due diligence.

1.6 Remittance Service

Airtel Payments Bank would offer Fund Transfer Services to its customers which will allow them to transfer funds from their accounts to other customer’s Airtel Payments Bank Account and to customers holding accounts with other banks within India. In addition, Airtel Payments Bank would look into the service needs of the migrant population by providing them Money Transfer services under Domestic Money Transfer guidelines issued by . Airtel Payments Bank would primarily rely on electronic methods of funds transfer. This would happen through NEFT,IMPS & RTGS. As newer and improved services become available, the customers would be notified of the same.

1.7 Redressal of complaints and grievances

Depositors having any complaint / grievance with regard to services rendered by the Bank has a right to approach authority (ies) designated by the Bank for handling customer complaint / grievances. The details of customer grievance redressal mechanism put in place by the bank are made available on the website of the bank.

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