The Presidents/Chief Executives,
All Banks/DFIs.

Dear Sirs/Madam,

DEPOSIT MOBILIZATION SCHEMES

Please refer to para 2(iv) of BPRD Circular No.29 dated 13th July, 1999 on the captioned subject.

2. It has come to the notice of State Bank that the banks/DFIs are indicating the expected rate of return in the account opening forms and in the deposit certificates/instruments etc. which they are unable to pay to their customers/account holders, with the result that the dissatisfied customers lodge complaints with the State Bank for intervening in the matter and arranging payment of profit at the expected rate of return. In order to avoid any confusion it is clarified that while banks/DFIs may continue advertising their products including the indicative expected rate of return, in terms of provisions of para 2(iv) of BPD Circular No. 29 dated 13-07-1999, they shall not mention, in future, the expected rate of return either on the account opening form or on the deposit certificate/instrument itself.

3. All other instructions on the subject shall remain unchanged.

Please acknowledge receipt.