FLEXI FIXED DEPOSIT SCHEME

The features of the scheme are as under:

1. PRODUCT & BENEFIT:

Flexi Fixed Deposit products offer liquidity in the shape of Savings / Current
deposit funds as well as higher returns as are available on fixed deposit funds.
Moreover, there is also an element of flexibility as the depositor can meet funds
requirement without loosing the interest, since transfer of funds to Savings /
Current account is made available as an in-built arrangement whenever required
by the depositor. In nutshell, the scheme enables a depositor to get returns on
his/her funds as a fixed deposit but at the same time retaining the character of
liquidity which is available in Savings Banks/Current Account.

2. ELIGIBILITY:

The Scheme is made available at all CBS branches and customer will have to
fulfil following conditions for its availment:

a) Customer will have to open an operative Account (Savings or Current)

under the Scheme (Flexi Fixed Deposit), if not maintaining one
already. The Account Opening Form (AOF) shall continue to be the
same as required for SB / CA. While obtaining Account Opening Form,
the type of account will be marked as “FLEXI FIXED” on the AOF itself.
The customer shall not be required to undergo formalities of getting
issued separate fixed deposit receipts, whenever the funds are
transferred from the Savings bank / Current account under the Auto
Sweep.
b) In addition to the Account Opening Form, a Letter of Undertaking
(Annexure II) and acknowledgement for Rules & Regulations
(Annexure III) for carrying out the request for the fixed component of
Amount and its Periodicity will be obtained from the customer
(Proformae enclosed).
c) Resident Indian customers shall be eligible to open accounts under the
scheme provided they maintain such account in Savings Bank/Current
Account under specific category like SB Smart Save, SB Smart Save
Silver Scheme, SB Smart Save Gold or Current Premium Gold which
are based on minimum average quarterly balances ranging from Rs.
5000/- to Rs. 100000/- more specifically detailed in Annexure I.
d) Flexi Fixed Deposit accounts shall be opened either singly or jointly.
e) To avail Flexi Fixed Deposit products, Staff, Ex-staff, Pensioners and
Senior Citizens will have to maintain accounts under this scheme.
However, concession in minimum balance requirement and penalty
thereon for not maintaining minimum balance will not be available to
these categories.

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3. MINIMUM AMOUNT OF DEPOSIT:

In case of new accounts, the initial deposit, as per the respective category under
which the account is proposed to be opened, shall be the pre-requisite. In case of
non-maintenance of minimum Average Quarterly Balance (as per Annexure I),
penalty as specified against each category of Savings / Current account shall be
levied in the account.

4. PERIOD OF DEPOSIT:

A deposit under the scheme shall be accepted for a period of 90 days to five
years in flexi saving accounts and for 15 to 45 days in flexi current accounts. By
default, it is 90 days in flexi Saving accounts and 15 days in flexi Current
accounts.

5. PAYMENT OF INTEREST:

The amount invested in the scheme shall attract rate of interest prescribed by the
Bank on domestic Term Deposits from time to time. Simple interest shall be
booked on quarterly basis but liquidation of interest will be on maturity only.

Staff / Ex-Staff and Senior Citizens will be entitled for additional rates in Flexi
Fixed Deposits as applicable in Domestic Term Deposits which presently is one
percent higher.

As per the extant rules, no premature payment penalty is levied if the amount of
Single Deposit is up to Rs. 5 lacs. As such the provision of premature penalty
shall be applicable on the amount of reverse sweep in case the amount held in
Flexi Fixed Deposit (from which reverse sweep is made) is more than Rs. 5 lacs.
The remaining balance of the FFD will continue to earn interest as per normal
rate till maturity.

6. AUTO SWEEP (SWEEP – IN):

When the balance amount in FFD linked Savings Bank / Current account shall
cross over the minimum balance, the excess, in multiple of Rs. 5000/- or 25000/-,
as applicable for different categories as per enclosed Annexure I, will be
transferred automatically to Flexi Fixed Deposit account, for the time period as
mandated by the depositor at the time of opening of account under the scheme.

7. REVERSE SWEEP (SWEEP OUT):

Through reverse sweep facility, the amount lying in Flexi Fixed Deposit shall be
available to the depositor whenever there is a requirement of funds in his / her /
their operative account i.e. savings / current account. As such, whenever the
depositor issues a cheque or uses ATM card and the available balance in his/her

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connected Savings/Current Account is not sufficient, Reverse Sweep will
automatically withdraw the required amount from Flexi Fixed Deposit account
and the remaining amount in FFD will continue to earn the same rate of interest,
as agreed upon in the contract. In such event, the amount from flexi fixed deposit
shall be transferred to his / her / their savings / current account by following the
LIFO (last in first out) method.

However, the funds to be transferred as a reverse sweep to Savings

Bank/Current Account will also meet the requirement of maintaining minimum
balance.

8. ISSUANCE OF PASS SHEET (STATEMENT) IN LIEU OF DEPOSIT

RECEIPTS:

In lieu of the regular Term Deposit Receipt, the Flexi Fixed deposit Pass Sheet
shall be made available to the customers maintaining account under the scheme.
A well established arrangement is already in place for generation and dispatch of
this statement to the customers. COPEC Secunderabad will issue pass sheet to
the customers of all the branches of the Bank who maintain account under this
flexi deposit scheme.

9. RESTRICTION ON LOAN:

No loan / OD in any shape shall be allowed against deposit held in Flexi Fixed
Deposit Scheme.

10. NOTICE TO THE EXISTING DEPOSITORS

With the implementation of proposed Flexi Fixed Deposit Scheme w.e.f. 1st
November, 2006, all future Auto Sweep (Sweep-In) as well as Reverse Sweep
shall be subject to the terms and conditions as stated hereinabove. Accordingly,
the existing customers of eGTB branches who are already enjoying Flexi Deposit
Scheme, a letter to the individual account holder shall be issued by the branch
duly communicating about the above noted amendments in the Scheme.
However, while the Auto Sweep and Reverse Sweep amounts shall be the
revised one, these customers shall be given 30 days time to meet the
requirement of minimum average quarterly balance. In other words, the penalty
for not keeping minimum average quarterly balance shall be effective from the
month of December 2006.

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 Annexure I

FLEXI FIXED DEPOSIT SCHEME

Operative Requirement Penalty for not Auto Reverse Period of

accounts with of initial keeping Sweep Sweep FFD
CBS codes deposit / minimum unit unit
minimum average (sweep (sweep
average quarterly in) out)
quarterly balance (per
balance quarter) $
SB Smart Rs. 5000/- ## Rs. 150/- Rs. Rs. 90 days
Save – 5000/- 1000/- to 5 years
Code SB 211 ##
Saving Smart Rs. 20000/- Rs. 300/- Rs. Rs. 90 days
Save Silver 5000/- 1000/- to 5 years
Scheme
Code SB 210
Saving Smart Rs. 50000/- Rs. 450/- Rs. Rs. 90 days
Save Gold 5000/- 1000/- to 5 years
Scheme
Code SB 209
Current Rs. 100000/- Rs. 1000/- Rs. Rs. 15 to 45
Account 25000/- 25000/- days
Premium
Gold Scheme
Code CA 109

## Auto Sweep shall take place only after the cut off level of Rs. 10000/- in linked
Saving Smart Save Account i.e. having a balance of Rs. 15000/- or above the
system will allow Auto Sweep in multiple of Rs. 5000/-. However, penalty for not
keeping minimum balance will be applicable only if the Minimum Average
Quarterly Balance falls below Rs. 5000/-.

$ Plus Service Tax as applicable

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 Annexure II
ORIENTAL BANK OF COMMERCE
(A GOVT. OF INDIA UNDERTAKING)
Branch___________________

FLEXI FIXED DEPISIT - UNDERTAKING

Reg: my /our application for Flexi Fixed Deposit (FFD) Account

1 I / We authorise the Bank to open an operative account

under…………………………………………scheme and to carry out all
transactions under the FFD Scheme through this account.
2 I / We authorise the Bank to carry out all transactions under the FFD
Scheme through my existing Smart Save / Smart Save Silver/ Smart Save
Gold/ Current Account Premium Gold account no. ………………….
3 I / We undertake to maintain a minimum average quarterly balance as
prescribed in the Scheme or as may be prescribed by the Bank from time
to time, in the operative account, failing which I/We undertake not to hold
the Bank responsible for any financial / reputation loss that might arise in
an unlikely event of dishonoring the cheques drawn by me / us under the
Scheme, without any prior intimation to me.
4 I / We authorise the Bank to open Term Deposits in my / our names, in
multiples of Rs. 5000/- / 25000/-, for a minimum period 90 days / 15 days
/………months /……..years, whenever there is an excess balance above
the prescribed Minimum Balance under the FFD Scheme.
5 In case the balance in the operative account falls below the stipulated
minimum, or is overdrawn, the Bank at its discretion may levy a charge as
it considers fit. In case of the account falling below the minimum or more
than 2 occasions the Bank may close the operative account without
reference to me / us.
6 I / We authorise the Bank to close my Flexi Fixed Deposits to the extent of
the debit balance and to meet the requirement of maintaining minimum
balance in my / our operative account (to the nearest multiples of Rs.
1000/- or 25000/-) on account of honouring the cheques drawn by me / us,
using LIFO (last in first out) method.
7 I / We understand that as per the scheme no TDRs / acknowledgements
will be given by the Bank for the deposits created under the scheme.
8 I / We authorise the Bank to mark lien on the deposits for any banking
facility extended to the undersigned and/ or to set-off against the dues that
may be payable to the Bank.
9 In the absence of rollover instructions to the contrary, the Bank is
authorised to rollover the deposit/s for similar period until further notice.

Name………………………….. Signatures……………
Account no. SB/CA……………
Date ……………………………

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 Annexure III

RULES AND REGULATIONS FOR FLEXI FIXED DEPOSIT SCHEME

1. Flexi Fixed Deposit scheme is a product/ scheme where money over the threshold limit is
automatically transferred (auto sweep) from operative account (saving or current account) and
invested in Bank’s fixed deposit scheme. Fixed deposit is linked to the operative account. Linked
fixed deposit gets broken automatically (reverse sweep) to meet the shortfall arising on account of
cheques issued, ATM withdrawals, etc.
2. The account holder/s has/ have to maintain a minimum quarterly average balance as per rules of
the Bank.
3. Auto Sweep will happen in multiple of Rs. 5000/25000 as applicable.
4. Reverse Sweep will be in multiple of Rs. 1000/25000 as applicable.
5. The scheme is applicable to resident Indian only.
6. Normal saving / current account transactions can be carried out.
7. Charges per quarter would be levied for non maintenance of minimum average quarterly balance in
the linked saving account or Current Account as per Bank’s rules from time to time.
8. Linked FFD will be renewed automatically.
9. Default period of linked deposits opened under the scheme will be 90 days in SB & 15 days in CA
or any other period stipulated by the account holder/s whichever is higher.
10. Such deposits will carry rates of interest as revised by the Bank from time to time for domestic
Term Deposits.
11. Deposits falling due will be renewed from time to time for further period of 90/15 days or any other
period as stipulated by the account holder/s (whichever is higher) under the auto renewal scheme.
The interest payable on such deposits will be at the rate applicable on such deposits of the Bank,
for the respective period, prevailing as on the date of such renewal.
12. The Bank will renew the deposit in multiple of Rs. 5000/- / 25000/- subject to Tax Deduction at
Source (TDS) wherever applicable, unless instructions to the contrary are received from the
account holder/s.
13. The Bank is authorised to link all fixed deposits made by the Bank under the auto sweep or auto
renewal facility, automatically to the operative account under the Flexi Fixed Deposit Scheme. If the
account holder/s desire/s to link any deposit opened by any other means, separate instructions to
that effect need to be given.
14. The Bank will issue Pass Sheet in lieu of fixed deposit receipts opened/ renewed under the scheme
from time to time.
15. No overdraft / loan will be provided against the security of fixed deposits made under the flexi fixed
deposit scheme.
16. The fixed deposits under the scheme will be in units of Rs. 5000/- / 25000/- each.
17. In case the account holder/s issue/s cheques on the linked operative account or draw from the
ATM or the Bank passes debits in the normal course for recovering dues from the account holder,
under the reverse sweep facility, the Bank is authorised to honour these cheques / debits / ATM
withdrawals even if there is a shortfall, provided the shortfall is not more than the aggregate
deposits that the account holder may have with the Bank under this scheme and prematurely or
otherwise encash the deposits in units or Rs. 1000/- or 25000/- (as applicable) and multiples
thereof to meet the shortfall. If the account holder has more than one deposit under the scheme,
the last deposit made under the scheme will be used first (LIFO) to meet the shortfall and if this is
not adequate, the deposit made prior to the last deposit will be used and so on and so forth, until
the shortfall is fully met.
18. The term deposit linked under flexi fixed deposit scheme will be under unconditional lien to the
Bank and the Bank will have a right of set off against the dues payable to the Bank. For this
purpose, the Bank is within its rights to close the deposit prematurely at its discretion, by applying
penal rate of interest. Bank’s lien will have priority over any obligation to pay a cheque drawn on
the linked saving / current account.

Name of depositor
Account number CA/SB ………………… signatures
Date: ………………………

Note: The account holder should advise he Bank in writing on any change in residential status.
The above mentioned terms and conditions are subject to change / modification without prior notice.