Who Can Open a SIDBI Fixed Deposit
The Small Industries Development Bank of India (SIDBI) offers a Fixed Deposit Scheme for a range of depositor categories, including individuals (including minors), HUFs, partnership firms, companies, societies and associations of persons, and statutory bodies. SIDBI FD is rated AAA(FD) by CARE & CRISIL, indicating the highest degree of safety regarding payment of principal and interest.
While the basic process of opening an FD is similar, the application and authorisation requirements can vary depending on who's making the deposit. Understanding the eligibility criteria and documentation requirements can help depositors complete their application correctly and avoid delays.
Eligible Depositor Categories
1. Individuals
Resident individuals (including Minors) can open a SIDBI Fixed Deposit either singly or jointly. The scheme also provides a nomination facility for both joint deposits by individuals. However, a deposit from a minor must be accompanied/ signed by the father or natural guardian.
Applicants must complete the application form and comply with applicable KYC requirements. Individuals can also place an FD through the SIDBI Online FD Module by logging in at https://fdappl.sidbi.in/.
2. Hindu Undivided Families (HUFs)
Hindu Undivided Families can invest in SIDBI Fixed Deposits. An application made on behalf of an HUF must be signed by the Karta of the family who acts on behalf of the HUF for the deposit.
3. Partnership Firms
Partnership firms are eligible to open Fixed Deposits with SIDBI. The application must be made through the signatory whose authority to act for the firm is reflected in the application and supporting documentation, wherever applicable.
4. Companies and Bodies Corporate
Companies and other bodies corporate can also open SIDBI Fixed Deposit accounts. Applications from these entities must be supported by a certified copy of the Power of Attorney or the relevant corporate authority authorising the person making the application.
The application must be signed by the signatory on behalf of the company or corporate body.
5. Societies and Associations of Persons
Societies and Associations of Persons are also included among the depositor categories. Their applications must be accompanied by a certified copy of the governing authority or relevant authorisation along with the signature of the signatory.
This helps establish that the person submitting the application has the authority to act on behalf of the organisation.
6. Statutory Bodies
Statutory bodies constituted under an Act of Parliament or State Legislature are also eligible to open SIDBI Fixed Deposits. The application must be made by the authorised signatory, whose authority to act on behalf of the statutory body is established through the relevant enabling documentation.
Documentation Requirements
The documentation and application process can differ depending on the depositor category. Some important requirements under the SIDBI Fixed Deposit Scheme include:
- Individuals can complete the FD opening process through the Online FD module.
- For offline FDs, the application form should be completed in block letters.
- A separate application form is required for deposits made under each scheme.
- Applications made under a Power of Attorney or by companies, corporate bodies, societies, trusts and Associations of Persons must include a certified copy of the Power of Attorney or other relevant authority.
- Signatures may be provided in English or any Indian language.
- Where a depositor provides a thumb impression of a signature, it must be attested by an authorised bank official or by a Magistrate/Notary Public under official seal.
- Payment for the deposit must be made through a cheque or demand draft in favour of "Small Industries Development Bank of India."
- The cheque or demand draft should be drawn on a bank branch situated in the city where the application is submitted.
- Outstation cheques or drafts, money orders, postal orders and cash payments are not accepted.
In addition to these scheme requirements, applicants need to adhere to the applicable KYC norms and provide the required identity, address, and other supporting documents.
Key SIDBI Fixed Deposit Scheme Facts
The SIDBI Fixed Deposit Scheme has a tenure of 12 months and a maximum tenure of 60 months. Deposits are accepted for tenures in multiples of one month.
AAA FD rating from CARE and CRISIL places the SIDBI Fixed Deposit at the highest level of safety, reflecting minimal risk to the timely payment of principal and interest.
Senior citizens are eligible for higher rates of interest up to 50 bps than the applicable card rates. The final rate depends on the deposit terms and tenure. Further, a depositor can also opt for a quarterly compounding FD where the annualized effective Yields increase by approximately 15-20 bps.
