CHAPTER 2

Retail Liabilities Products – Current Deposits

Introduction

What is Current Account and what are its characteristics?

A current account is a form of demand deposit whereupon withdrawals are

allowed any number of times depending upon the balance in the account or
upto a particular agreed amount and shall also be deemed to include other
deposit accounts which are neither savings deposit nor term deposits.

Since such deposits are repayable on demand, they constitute part of demand
liabilities of the bank.

Current accounts particularly suit the requirements of business, trading, joint

stock companies, institutions, public authorities and public corporations etc.,
whose banking transactions happen to be numerous every working day.

• Since the purpose of the deposit is generally for 'Trading' and 'Business' it
differs from the object of other deposit accounts which are meant to tap/
mobilize the savings of the people.

• RBI directives prohibit payment of interest on current accounts, except

with the prior approval of the RBI.

• Third party cheques and cheques with endorsements may be deposited

in the current account for collection and credit to the account.

• There is no restriction on number and amount of withdrawals in the

account,
• Overdraft facility is permitted with prior arrangement.
• Cheque books are issued in all current accounts.

VARIOUS TYPES OF CURRENT ACCOUNTS IN BANK OF BARODA

1. Baroda Small Business Current Account

2. Baroda Advantage Current Account
3. Baroda Premium Current Account
 4. Baroda Premium Current Account – Privilege

Common Features of above 4 products

 Nomination Facility (for individuals and sole proprietorship a/cs only)

 No Limit to Number of Transactions (charges applicable)
 Free Internet Banking
 Absolute Liquidity
 Bank Statement
 Free Internet banking facility
 Free Online Payment of Excise Duty
 Free ATM card facility

1. BARODA SMALL BUSINESS CURRENT ACCOUNT (CA124)

This was introduced in November 2016 with the objective of bringing small business
units – predominantly small traders and merchants who have been largely
unbanked, into banking fold and enabling them to meet the challenges of business.
This will also facilitate increased use of ADCs/POS.

This product is based on the concept of “PAY AS YOU USE” and also gives the
customers the benefit of better utilization of resources as they have to maintain only
a small amount of quarterly balance in the account.

The salient features of this product are as follows:

Location This product is available Branches in Metro & Urban

Areas

Eligibility Individuals, Proprietorship and Partnership firms

carrying on small business

QAB QAB of ₹ 2500

Charges for non- ₹ 300 plus GST per quarter

maintenance of QAB

Limit in no. of Max 5 non-ADC transactions per month free. There is

Transactions no restriction in no. of ADC Transactions.

Charges for exceeding For every additional non-ADC transactions in excess

limit in no. of transactions of 5 non-ADC transactions in the month, charge of ₹
10 plus GST per transaction will be levied

Turnover Limit Credit Turnover not to exceed ₹ 20 lacs in a financial

year
Charge for exceeding
turnover limit of ₹ 20 lacs
Once the turnover during a financial year exceeds ₹
20 lacs, customer will receive a SMS alert and will be
asked to convert his account to Baroda Advantage
Current Account (CA101). Till the date of such
conversion, the customer shall be charged ₹ 15 per
transaction except for non-ADC transactions which will
continue to be free.

There will not be any transaction charges for ADC

transactions (without any limit). However ADC
transactions shall be reckoned for the calculation of
Ledger folio charges.

Transaction charges as above shall be calculated on

daily basis but debited to the account once a month. In
case adequate balance is not available in the account
at the time of applying the charges, then the amount
shall be held as lien.

Folio charges 2 free folios for QAB of upto ₹ 100,000.

No charges if QAB is more than ₹ 100,000.
₹ 125 per folio
25 transactions or part thereof make one folio.

Debit Card Debit Card in the form of RuPay Card shall be given
only to individuals and proprietors – free for first year,
and subsequently chargeable as per standard rates.

Cheque book First cheque book of 50 leaves free. Thereafter

charges of ₹ 5 plus GST per cheque leaf shall be
levied.

SMS Charges SMS charges at ₹ 25 plus GST per quarter.

2. BARODA ADVANTAGE CURRENT ACCOUNT (CA101)

Eligibility
 Individuals (Above the Age of 14)
 Traders
 Trusts
 Business Persons
 Corporates
 HUF
 Proprietorship / Partnership Firm
 Private / Public Ltd. Companies/LLPs
 Clubs, Societies, Banks and Associations

Balance
 Quarterly Average Balance (QAB) – ₹ 10,000 [U/M] and ₹ 2,000 [R/SU]

Service Charges
• Not Maintaining QAB- ₹ 625 per quarter + GST in M/U Branches
₹ 350 per quarter + GST in R/SU branches
 Closure of Account within One Year –Individuals : ₹ 250 + GST.
Others : ₹ 500 + GST
 SMS charges at ₹ 25 plus GST per quarter.

Other features
 Immediate Credit of Outstation Cheques (up to ₹ 20,000)

3. BARODA PREMIUM CURRENT ACCOUNT (CA108)

Special Features
 Quarterly Average Balance – ₹ 75000.
 Auto sweep will take place above the threshold limit of ₹ 5 lacs in
multiples of ₹ 25,000. Thus, first sweep out will happen once the balance
reaches ₹ 5,25,000.
 On customer’s request, threshold limit may be increased beyond ₹
5,00,000 in multiples of ₹ 1,000, i.e., ₹ 5.01 lacs, ₹ 5.02 lacs, and so on.
 Reverse Sweep Facility Available in Multiples of ₹ 25,000above the
Threshold Limit of ₹ 500,000 (for 15-45 days).
 In case customer requests, reverse sweep may be increased but in
multiples of ₹ 25,000 (i.e., ₹ 50,000, ₹ 75,000, and so on).
 The auto sweep will be carried out by system every Monday.
 Concession of 50% on Remittances (DD / BC) & on Collection of
Outstation Cheques
 Immediate Credit of Outstation Cheques ( Up to ₹ 50000)
 Free Credit Card ( For First Year ) Maximum to 2 Partners or 2 Directors
 Free Personal Accident Insurance with Credit Card
 Free Unlimited Cheque Books & Free Folio Usage
 Free Balance Certificate & Free Signature Verification
  25 % Discount on Demat Services

Eligibility
 Individuals (Not Minor)
 Traders
 Trusts
 Business Persons
 Corporates
 HUF
 Proprietorship/Partnership Firm
 Private / Public Ltd. Companies/LLPs
 Club, Societies and Associations

Service Charges

 Non Maintenance Of QAB – ₹ 600+ GST

 Amount Transferred to SDR will not be considered for Calculating QAB
 Closure of Account within one Year – ₹ 600 + GST
 SMS charges at ₹ 25 plus GST per quarter.

4. BARODA PREMIUM CURRENT ACCOUNT - PRIVILEGE (CA107)

Special Features

 Quarterly Average Balance (QAB) – ₹ 250,000

 Free Auto sweep will take place above the threshold limit of ₹ 5 lacs in
multiples of ₹ 25,000. Thus, first sweep out will happen once the balance
reaches ₹ 5,25,000.
 On customer’s request to the home branch, threshold limit may be
increased beyond ₹ 5,00,000 in multiples of ₹ 1,000, i.e., ₹ 5.01 lacs, ₹
5.02 lacs, and so on.
 Reverse Sweep Facility Available in Multiples of ₹ 25,000above the
Threshold Limit of ₹ 500,000 (for 15-45 days).
 In case customer requests the home branch, reverse sweep may be
increased but in multiples of ₹ 25,000 (i.e., ₹ 50,000, ₹ 75,000, and so
on).
 The auto sweep will be carried out by system every Monday.
 Free DD / BC and Free Collection of Outstation Cheques
  Immediate Credit of Outstation Cheques Up to ₹ 150,000.
 Free Credit Card (For First Year) Maximum to 2 Partners or 2 Directors
 Free Personal Accident Insurance with Credit Card
 Free Unlimited Cheque Books
 Free Folio Usage
 Free Balance Certificate
 Free Signature Verification
 25 % Discount on Demat Services

Eligibility
 Individuals (Not Minor)
 Traders
 Trusts
 Business Persons
 Corporates
 HUF
 Proprietorship/Partnership Firm
 Private /Public Ltd. Companies/LLPs
 Club, Societies and Associations

Balance

Service Charges

 Non Maintenance of Minimum Balance – ₹1,000 + GST

 Closure of Account within One Year – ₹1,000 + GST
 SMS charges at ₹ 25 plus GST per quarter.

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