Circular : IC/489/2022

Index : DEP – 33
;
Date : 06/08/2022
Development Section AFEZ
Strategic Planning & Development Wing
Head Office, Bengaluru – 560 002
Sub: Revision in Interest Rates on Domestic & NRO Term Deposits w.e.f. 08.08.2022.
Synopsis
 Revision in Interest Rates on Domestic and NRO Term Deposits w.e.f. 08.08.2022.
 Introduction of 666 Days Slab for Domestic Term Deposits of less than Rs.2 crore.
 Branches who are desirous of quoting deposits with validity period/ preferential rate
for Bulk Deposits of Rs.2 Crore and above to less than Rs.10 Crore have to obtain
permission from Integrated Treasury Wing through their respective Circle offices.
We had vide our Circular No. IC/451/2022 dated 15.07.2022 advised the revision in rate of
interest on Domestic/NRO Term Deposits w.e.f. 16.07.2022.
It has been decided to revise the interest rates w.e.f. 08.08.2022. The revised rate of interest
slabs are as under:
RATE OF INTEREST (P.A)
Less than Rs. 2 Crore to less than
SLABS PERIOD OF DEPOSIT Rs.2 Crore Rs.10 Crore #
Sr. Non-Callable
General Callable
Citizen ++
1** 7 Days to 45 Days 2.90 2.90 2.90 NA @
2 46 Days to 90 Days 4.00 4.00 3.10 3.10
3 91 Days to 179 Days 4.05 4.05 3.35 3.35
4 180 Days to 269 Days 4.65 5.15 3.35 3.35
5 270 Days to less than 1 Year 4.65 5.15 5.75 5.80
6 333 Days (Valid till 30.09.2022) 5.10 5.60 NA
7 1 Year only 5.50 6.00 6.00 6.05
8 Above 1 Year to less than 2 Years 5.55 6.05 6.00 6.05
9* 666 Days 6.00 6.50 NA
11 2 Years & above to less than 3 Years 5.60 6.10 6.00 6.05
12 3 Years & above to less than 5 Years 5.75 6.25 6.00 6.05
13 5 Years & above to 10 Years. 5.75 6.25 3.40 NA @
# Interest rate for Single Bulk Term Deposit of Rs.10 Crore & above is to be obtained from
Integrated Treasury Wing, Mumbai.
*New Slab for 666 Days for Domestic term deposits of below Rs.2 Crore is introduced.
** Rates are applicable only for single deposit of Rs.5 Lakh & above. Minimum period for
acceptance/renewal of Domestic/NRO term deposits is 7 days irrespective of the size of deposit.
For Single deposit of below Rs.5 Lakh, the Minimum tenor of deposit is 15 Days.
++ Non-callable term deposits are Bulk deposits where PREMATURE WITHDRAWAL IS NOT
PERMITTED.
@ Bank is not accepting Bulk term deposits under Non-callable segment for maturities of below 46
Days and 5 years and above.
1. The revised interest rates are applicable to fresh term deposits under DOMESTIC, NRO &
CAPITAL GAINS ACCOUNT SCHEME, 1988 accepted/renewed on or after 08.08.2022.
2. For interest rates on Canara Tax Saver term deposits, branches are advised to refer to H.O.
Circular 320/2022 dated 10.05.2022 and other related Circulars issued in this regard from
time to time.

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3. For domestic term deposits of Senior Citizens (including RD), Bank is offering additional ROI
of 0.50% for Deposits less than Rs.2 Crore and with tenor of 180 days and above. The
competent authority i.e. Head of SP&D Wing may selectively permit flexibility in tenure
(lower than 180 Days) and amount (Rs.2 Crore and above), keeping in view the business
relation with the customer. Senior Citizens are not eligible for additional interest rate on
NRO term deposits and Deposits accepted under Capital Gains Accounts Scheme, 1988.
The system will automatically enable preferential ROI of 0.50% to all existing eligible
Domestic Term Deposits and RD Deposits from the date of Customer attaining Senior Citizen
status w.e.f. 24.07.2018 (Ref. HO Cir 411/2018).
4. The upper limit for a branch, to accept single term deposit at Card rate, has been
enhanced to less than Rs.10 Crore with effect from 26.03.2020. However, if branches are
desirous of quoting deposits with validity period/ preferential rate for Bulk Deposit of
Rs.2 Crore and above to less than Rs.10 Crore, then permission has to be taken from
Integrated Treasury Wing through their respective Circle offices.
5. For Single Bulk Domestic term deposit of Rs.10 Crore and above, Designated branches (as
detailed in HO Cir 521/2021 dated 26.07.2021 and reviewed later) are instructed to take up
with T & I Division, Integrated Treasury Wing, Mumbai, HO through MIPD & PP Section of
respective Circle office for obtaining permission to accept the deposit. Head of S P & D
Wing is permitted to designate any branch (other than Designated branches) to open Single
Bulk Term Deposit of “Rs.10 Crore and above” in exceptional circumstances based on
business needs and on the recommendations of the Circle Head.
6. Non-Callable deposits (where PREMATURE WITHDRAWAL IS NOT PERMITTED) are single
Bulk Term Deposits of Rs. 2 Crore and above (other than individuals and HUF) for a period
46 days and above to less than 5 years. The branch accepting Non-Callable term deposit
should invariably affix a Rubber stamp/superscribe that “PREMATURE WITHDRAWAL IS
NOT PERMITTED” on the Deposit Receipt. Loan/OD against Non-Callable deposits are
permitted as per the Policy of the Bank.
7. For Employees / Ex-employees and other categories of depositors who are eligible for
preferential interest rate (as detailed vide Circular No. IC/387/2022 dated 08.06.2022),
additional 1.00% over and above the rate applicable for General public is to be extended
(except for term deposits under NRO and Capital Gains Deposit scheme), irrespective of the
size of the deposit.
8. For Ex-employee Senior Citizens (60 years and above) additional 1.50% over and above the
rate offered for General public is to be extended for all deposit periods (except for term
deposits under NRO, and Capital Gains Deposit scheme), irrespective of the size of the
deposit. However, under Canara Tax Saver Scheme, the additional interest rate offered
to Ex-employee Senior Citizens over and above the rate offered for General Public is 1%
only.
9. In the case of a Domestic/NRO term deposit standing in the name of a HUF, the additional
interest rate eligible for a Senior Citizen term deposit cannot be extended to the Karta of
the HUF on the basis that he is a Senior citizen (as the beneficial owner of the deposit is
the HUF and not the Karta in his individual capacity).

10. NRO Term Deposits: Senior Citizens are not eligible for additional interest rate for their
NRO term deposits. Employees/Ex-employees/Ex-employee Senior citizens are also not
eligible for additional interest rate for their NRO term deposits (vide H.O. Circular No
223/2012 dt.23.07.2012).
11. Capital Gains Account Scheme: No higher/preferential/additional rate of interest is to be
extended for deposits accepted under Capital Gains Accounts Scheme, for all categories of
depositors (including deposits of Senior Citizen/Staff/Ex-staff).

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12. Recurring Deposits: The revised interest rates are applicable to Recurring Deposits also.
Employees/Ex-Employees are eligible for preferential rate of 1% over and above the rate
offered for General Public on their Recurring Deposits. Ex-employee-Senior Citizens are
eligible for additional rate of 1.50% over and above the rate offered for General public on
their Recurring Deposits. Senior Citizens are eligible for additional rate of 0.50% over and
above the rate offered for General public on their Recurring Deposits.
13. A penalty of 1.00% shall be levied for premature closure/part withdrawal/premature
extension of Domestic/NRO term deposits of less than Rs. 2 Crore that are accepted
/renewed on or after 12.03.2019. The relevant clause out of the following should
invariably be mentioned in the Deposit receipt either manually or by affixing a rubber
stamp:
“For premature closure/part withdrawal/premature extension of Domestic/NRO term
deposits, the Bank imposes a penalty of 1.00%. Such prematurely closed/part
withdrawn/prematurely extended deposits will earn interest at 1.00% below the rate as
applicable for the relevant amount slab as ruling on the date of deposit and as applicable
for the period run OR 1.00% below the rate at which the deposit has been accepted,
whichever is lower.” However, no interest will be payable on term deposits prematurely
closed/prematurely extended before completion of 7th day.
14. A penalty of 1.00% is waived in case of premature closure/part withdrawal/ premature
extension of Domestic/NRO CALLABLE term deposit of Rs. 2 Crore & above that are
accepted/renewed on or after 12.03.2019. Such prematurely closed/part
withdrawn/prematurely extended deposits will earn interest at the rate as applicable for
the amount slab of Rs.2 Crore & above as ruling on the date of deposit and as applicable
for the period run OR the rate at which the deposit has been accepted, whichever is lower.
However, a penalty of 1.00% shall be levied for premature closure/part
withdrawal/premature extension of Domestic/NRO term deposits of Rs.1 Crore & above
that are accepted /renewed from 04.02.2011 to 12.10.2012. Further, no interest will
be payable on term deposits prematurely closed/prematurely extended before
completion of 7th day. A penalty of 1.00% is applicable on Term Deposits under Capital
Gains Account Scheme-1988, which are prematurely converted/withdrawn/closed,
irrespective of the size of the deposit amount.

15. No penalty is applicable for premature closure/part withdrawal/ premature extension of

Domestic and NRO term deposits of Employees/Ex-employees and other category of
depositors eligible for preferential interest rate (as detailed vide HO Circular No
IC/387/2022 dated 08.06.2022) for their Domestic and NRO term deposits accepted
/renewed on or after 08.09.2011. Such prematurely closed/part withdrawn deposits will
earn interest at the rate as applicable for the relevant amount slab as ruling on the date of
deposit and as applicable for the period run OR the rate at which the deposit has been
accepted, whichever is lower.
16. A penalty of 0.50% for premature withdrawal of term deposits under Sweep-out facility is
introduced w.e.f. 26.01.2022. When there is a premature withdrawal of sweep-out TD, the
interest will be paid at the applicable rate with a penalty of 0.50% for the period the
withdrawn TD amount has run (Vide H.O. Circular No 599/2021 dt.09.09.2021, 670/2021,
680/2021 & IC/49/2022 dt.28.01.2022).

17. A penalty of 1.00% is waived in case of NRO term deposits that are prematurely withdrawn
for the purpose of reinvestment in the Bank’s NRE term deposits w.e.f.23.08.2012 vide
HO Circular No. 252/2012 dated 22.08.2012. These conversions are to be in tune with the
provisions of H O Circular No: IO/60/2012 dt.09.05.2012.

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 18. As Canara Khazana Deposit & Canara Shikhar Deposit Scheme have been discontinued w.e.f.
26.03.2020, Canara Samriddhi Deposit Scheme has been discontinued w.e.f. 01.10.2015,
“Canara Unique” for 1111 Days has been discontinued w.e.f. 31.03.2022 (HO Cir 792/2021
dated 13.12.2021) and “Canara Amrit-75” for 75 Months has been discontinued w.e.f.
26.01.2022 (HO Cir 793/2021 dated 13.12.2021), Auto Renewal of deposits under these
scheme will not take place. As such, the concerned depositors will have to be intimated
about the same by the Branches. Vide H.O. Cir. No. 621/2016 dated 16.11.2016, Branches
have been advised to generate BO report No.170214 for details of Canara Samriddhi/
Canara K Deposits accounts and obtain maturity pay out instructions from the depositors
and enter the same in TD039 option for all outstanding Canara Samriddhi/ Canara K
Deposits accounts on an ongoing basis.

19. Auto Renewal facility is not available for Canara Tax Saver Deposits, Capital Gains
Accounts, Non-KYC complied term deposits, Non-callable deposits, Canara Samriddhi
deposits (discontinued w.e.f. 01.10.2015), Canara Khazana and Shikhar Deposits
(discontinued w.e.f. 26.03.2020), Canara Unique (discontinued w.e.f. 31.03.2022), Canara
Amrit-75 (discontinued w.e.f. 26.01.2022).

20. Overdue deposits (i.e. matured deposits details made available in Data Warehouse Group
Report No 331102) will be paid interest as applicable to Savings account or the contracted
rate of interest on the matured TD, whichever is lower from the date of maturity till the
date of payment/ re-investment.

21. Although the Bank is sending information regarding the maturity of Deposits by means of
Digital Communication (SMS/Email), Branches/Regional Offices/Circles Offices have to
closely monitor their Overdue Term Deposits Position on a Regular Basis, if the
depositor does not turn up for renewal/payout instructions.

22. The cited guidelines are generally applicable to all Domestic/NRO Term Deposits (if
otherwise specified in Particular Scheme guidelines).

All branches/offices are advised to take note of the contents of this Circular and display the
revised interest rate schedule prominently on their Notice Board, as per the Annexure.

B SUDHAKAR KOTARY
GENERAL MANAGER

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 HEAD OFFICE: BENGALURU
Branch: _________________

INTEREST RATES ON DOMESTIC/NRO TERM DEPOSITS WITH EFFECT FROM 08.08.2022.

RATE OF INTEREST (P.A)
Less than Rs. 2 Crore to less than
SLABS PERIOD OF DEPOSIT Rs.2 Crore Rs.10 Crore #
Sr. Non-Callable
General Callable
Citizen * ++
1** 7 Days to 45 Days 2.90 2.90 2.90 NA @
2 46 Days to 90 Days 4.00 4.00 3.10 3.10
3 91 Days to 179 Days 4.05 4.05 3.35 3.35
4 180 Days to 269 Days 4.65 5.15 3.35 3.35
5 270 Days to less than 1 Year 4.65 5.15 5.75 5.80
6 333 Days (Valid till 30.09.2022) 5.10 5.60 NA
7 1 Year only 5.50 6.00 6.00 6.05
8 Above 1 Year to less than 2 Years 5.55 6.05 6.00 6.05
9*** 666 Days 6.00 6.50 NA
11 2 Years & above to less than 3 Years 5.60 6.10 6.00 6.05
12 3 Years & above to less than 5 Years 5.75 6.25 6.00 6.05
13 5 Years & above to 10 Years. 5.75 6.25 3.40 NA @
*** New Slab for 666 Days for term deposits below Rs. 2 Crore introduced.
** Rates are applicable only for single deposit of Rs.5 Lakh & above. Minimum period for acceptance/renewal of
domestic/NRO term deposits is 7 days irrespective of the size of deposit. For Single deposit of below Rs.5 Lakh, the
Minimum tenor of deposit is 15 Days.
* Additional interest of 0.50% for Senior Citizens is to be made available for Deposits less than Rs. 2 Crore and with
tenor of 180 Days and above, though they are not eligible for additional interest rate on NRO term deposits and
Deposits accepted under Capital Gains Accounts Scheme, 1988.
# Interest rate for Single Bulk Term Deposit of Rs. 10 Crore & above is to be obtained from Integrated Treasury Wing,
Mumbai.
++ Non-callable term deposits are Bulk deposits (Rs. 2 Crore and above for other than Individuals and HUF), where
PREMATURE WITHDRAWAL IS NOT PERMITTED.
@ Bank is not accepting Bulk term deposits under Non-callable segment for maturities of below 46 Days and 5 years
and above.
1. A penalty of 1.00% will be levied for premature closure/part withdrawal/premature extension of
Domestic /NRO term deposits of less than Rs.2 Crore that are placed/renewed on or after
12.03.2019 and Rs.1 Crore & above that are placed/renewed from 04.02.2011 to 12.10.2012.
2. No penalty will be levied for premature closure/part withdrawal/premature extension of Domestic
/NRO term deposits of Rs.2 Crore & above that are placed / renewed on or after 12.03.2019.
3. A penalty of 1.00% is applicable on Term Deposits under Capital Gains Account Scheme-1988, which are
prematurely converted/withdrawn/closed, irrespective of the size of the deposit amount.
4. No interest will be payable on term deposits prematurely closed/prematurely extended before
completion of 7th day.
5. Canara Amrit - 75 Retail Term Deposit Scheme for “75 Months” discontinued w.e.f. 26.01.2022 & Canara
Unique of 1111 Days discontinued w.e.f. 31.03.2022.
6. Overdue deposits (i.e. matured deposits) will be paid interest as applicable to Savings account or the
contracted rate of interest on the matured TD, whichever is lower from the date of maturity till the
date of payment/ re-investment.
7. Auto Renewal facility is not available for Canara Samriddhi, Canara Unique Deposits, Canara Tax Saver
Deposits, Capital Gains Accounts, Non-KYC complied term deposits, Non-callable deposits, Canara
Samriddhi deposits and Canara Khazana & Shikhar deposits (which are discontinued).
8. For further details, customers may visit our website www.canarabank.com
BRANCH MANAGER

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