Frequently asked questions !

DEPOSITS
 
Is TDFC a Government Organisation?
 
Yes. TDFC is  a Government Organisation, fully owned by the Government of Tamilnadu
 
Whether TDFC  is registered with RBI?
 
Yes. TDFC is registered with Reserve Bank of India as a Non-Banking Finance Company and the Registration No. is 07.00403.

Who can make deposits ?

• Any individual can make deposit
• The minors can make deposit with the natural guardian
• Various Private Institutions, Educational Institutions / Educational Trust / Temples / Government Departments / Boards may also invest in the name of the institutions / Department / Board.
• RBI has permitted TDFC to accept NRI Deposits on Non-Repatriation Basis – However, there is no NRI Deposit with TDFC now.

What is the mode of deposit?
 
Chennai depositor can make deposit either through local cheque or Bankers Cheque.
Outstation depositors can make deposit through cheque payable at par / Demand Draft. (Bank charges can be deducted since it is borne by TDFC)  Outstation cheques not accepted
No cash receipt or payment is entertained.
 
What are the Deposit Schemes offered by TDFC?
 
TDFC is offering two types of Deposit Schemes viz.
 
1.Periodical Interest Payment Scheme (PIPS) (Interest is payable monthly or quarterly or annually). click here for the scheme
 
2. Money Multiplier Scheme (MMS) (Interest is payable at the end of the maturity period)
click here for the scheme
 
Where from the Application form can be obtained?

Application forms can be obtained from the Registered Office of the Corporation at Tourism Complex (4th Floor), No.2, Wallajah Road, Chennai – 600 002  Ph. (044) 25333930 / 25333931 / 25333932 and Deposit Moblisation Center, Coimbatore. (Address: SETC Bus Stand Complex, Gandhipuram, Coimbatore-641044. Ph: 0422-2527102)   The prescribed application form can also be downloaded from our website.  
Click here for application form.
 
How is the deposit amount to be remitted?
 
The deposit amount should be remitted in the form of crossed Demand Draft or at par Cheque in the name of TAMILNADU TRANSPORT DEVELOPMENT FINANCE CORPORATION LTD. payable at Chennai.
 
Outstation depositors can remit the amount by at par cheque / demand draft (eg. for depositing Rs.10,000/-,  depositor may send DD for Rs.9980/- after deducting bank commission of Rs.20/-)
 
Whether Nomination facility is possible?
 
Yes. Nomination facility is available subject to the provisions of the RBI (Amendment) Act 1997. Further a nomination can be made only in respect of a deposit account which is held in the individual capacity of the depositor, and not in any respresentative capacity such as the holder of an office like Director of a company, secretary of an Association, partner of a firm, or Karta of an HUF.  There should be only one Nominee.  The prescribed form for nomination has to be submitted. 
click here for the nomination form.
 
Whether TDFC has collection centers or branches?
 
Yes.  We have Deposit Mobilisation Centre at Coimbatore. (Address: SETC Bus Stand Complex, Gandhipuram, Coimbatore-641044. Ph: 0422-2527102)
 
Whether Joint deposit is possible?
 
Yes, the amount may be deposited jointly with not more than two persons.  (The number of depositors should not exceed three including the first named depositor)
 
Who is a Senior Citizen?
 
Persons who have completed 58 years.
 
Deposit with Joint Names Vs Deposit with nomination
 
During the tenure of deposit, no addition or deletion or change of joint depositor is permitted except in case of any eventuality to any of the depositor.
However nomination can be cancelled or modified during the tenure of deposit.
 
NRI DEPOSITS
 
Whether deposits from NRI can be accepted?
 
Yes.  The deposits from NRI can be accepted.  The maturity value of the deposits and interest on deposits will be not repatriated outside India.  Income tax at the applicable rate will be deducted at the time of payment of interest.
 
The deposit amount should be remitted in our account at HDFC Bank, Mariam Centre, Anna Salai, Chennai-2 through normal banking channel or from ordinary non-resident / non-resident external / foreign currency non-resident accounts of the prospective investor maintained with the bank authorized to deal in foreign exchange in India.
 
RATE OF INTEREST
 
What is the rate of interest payable on Deposits now?
 
click here  for the rate of interest 
 
Whether ECS facility is available for payment of interest?
 
Yes.  ECS facility is available for payment of interest on deposits under Regular Interest Payment Scheme.

Is there any benefit for Senior Citizens?
 
Yes. Senior Citizens are offered with additional interest @ 0.25% for 1 year and 2 years deposit and @ 0.50% for the period of 3 years to 5 years.
 
LOAN ON DEPOSITS
 
Whether loan can be availed on deposit?
 
Yes.  The loan (only one) can be availed during the tenure of the Deposit upto 75% of the deposit amount after three months from the date of deposit.
 
What is interest rate on loan on deposits? 
 
The rate of interest on loan will be 2% more than the rate of interest payable on deposits.
 
What is the procedure for obtaining loan on deposit?
 
A prescribed loan application form duly executed by all the depositors along with duly discharged Original Deposit Receipt should be submitted to TDFC Ltd.
click here  for loan application form.
 
What is the procedure for repayment of the loan on deposit?
 
The loan amount along with interest should be repaid in one lump sum.  In case, if the loan is not settled upto the date of maturity, the deposit amount will be adjusted against loan together with interest, as applicable, and the balance will be refunded.
 
PREMATURE CLOSURE OF DEPOSITS
 
Whether the deposit can be pre-closed?

Yes.  The deposit can be pre-closed after three months from the date of deposit.
The preclosure of deposit will not be permitted upto 3 months from the date of deposit.
 
What will be the rate of interest on pre-closure of deposit?

If the deposit is pre-closed, the interest will be regulated as follows:
 
After 3 months from the date of deposit but
before completion of 6 months from the                     :No interest
date of deposit
 
After 6 months from the date of deposit but               :Interest @ 3% p.a. less from the
before completion of 12 months from the date            :rate applicable for 12 months deposits
of deposit 
 
After 12 months but before the date of maturity          :Interest will be paid 2% less than the
                                                                             rate which the company would have 
                                                                             ordinary paid, had the deposit been
                                                                             accepted for the periods for which such
                                                                             deposit had run.

Eg.: on a particular date the rate of interest on deposits is as follows:

Period	1st year	2nd year	3rd year	4th year	5th year
Rate in %	8.50	8.75	9.25	9.25	9.25

Assuming the deposits was  made for 36 months, whereas premature withdrawal is opted after 26 months, then the eligible interest will be as follows:-
 
Interest for 24 months as per the chart = 8.75
Less: deduction  for premature withdrawal = 2.0
 
Eligible interest due to premature withdrawal= 5.50% (8.5–3.0)         

The excess interest paid, if any, will be adjusted and the balance amount paid.
  
What is the procedure to be adopted for pre-closure
 
The Original Deposit Receipt duly discharged by all the Depositors has to be submitted along with the request signed by all the Depositors for premature closure of Deposit.
 
MATURITY OF DEPOSIT
 
What is the procedure for closure of Deposit on maturity?
 
The original deposit receipt duly discharged by all the depositors by affixing one rupee revenue stamp on the back side of the deposit certificate has to be forwarded to TDFC.  On receipt of the certificate, the amount will be refunded by at par cheque. 
 
 What is the procedure for Renewal of Deposit?
 
The deposit receipt duly discharged by all the depositors together with fresh application form duly filled in has to be submitted on or before the date of maturity.
 
What is the procedure of renewal of Deposit after the date of maturity?

1. Belated renewal with full benefit is applicable only if renewal request is received within 6 months of maturity.
2. In case of belated renewal after the six months of maturity but before one year  
   - Interest @ 4% p.a. from the date of maturity to the date of renewal application the amount received.
   - Renewal from the date of receipt of application at the rate of interest as applicable on that day.
3. Renewal request is received after one year from the date of maturity, renewal will be done from the date of receipt of application at the rate of interest applicable on that day.

What is the procedure for transfer of deposit in joint account in the event of death of the first name depositor?
 
In the event of demise of the first named depositor, all payment will be made to the person first in order of the survivor (s) and for all purposes he / she will be considered as the first named depositor.
 
What is the procedure for transfer of deposit in single name (without joint holder)?
 
In the event of demise of the depositor (without joint holder), all payment will be made to the legal heir of depositor on production of the death certificate.  If there are more than one legal heir, other legal heir should give a consent letter signed before the Notary Public, on whose name the FDR has to be transferred.
 
Whether Income Tax will be deducted from the interest on deposit?
 
Income Tax in terms of provisions of Income Tax Act, 1961 as amended from time to time will be deducted from the interest payable.
 
As per statutory provisions, if the aggregate amount of interest payable to a depositor in anyone Financial Year exceeds Rs.5,000/-  Income Tax at applicable rate as prescribed in the Income Tax Act / Finance Act as amended from time to time will deducted.
 
Non-Assessee are required, if necessary, to furnish Form 15G for individuals / 15H for senior citizen (60 years for income-tax purposes) or Form 15AA for Trust in case of Trusts for Financial year as per the Income Tax Act, for non-deduction of tax at source.