Recurring and Term Deposit

Recurring and Term Deposit

Dhanlaxmi Bank's recurring and term deposits provide NRIs with the twin benefits of healthy returns and monthly remittances into a recurring account. You can choose to remit fixed monthly.
instalments into a Laxmi Recurring Deposit at various maturity periods. On maturity, the principal and interest is transferred to a fixed deposit, which earns interest according to rates prevailing at the time of transfer. Interest from the fixed deposit can be paid out monthly at a discounted rate.



  • NRIs can add fixed instalments directly into the Laxmi Recurring Deposit scheme or open a savings bank account and issue a standing instruction to add deposits to the scheme
  • Minimum deposit of Rs. 1,000 and subsequent deposits in multiples of Rs. 500, without any maximum limit
  • Tenure of the NRE Recurring Deposit scheme can be 12, 24, 36, 48, 60, 84 or 120 months
  • On maturity of the deposit scheme, the compounded amount will be converted into a fixed deposit for a period of 60 months
  • Interest on fixed deposit will be at the prevailing interest rate for NRE term deposits in accordance with RBI directives, subject to compliance with tax laws, if any
  • Interest on the fixed deposit is paid on a monthly basis at discounted value. This monthly payout continues till the fixed deposit is closed
  • In case of a joint account with a survivorship mandate, in the event of the death of one depositor, interest payments will continue to the joint depositor. In the event of the demise of both depositors, the balance amount in the account will be paid to the nominee or the legal heirs, on production of sufficient supporting documents as required by the bank.
  • The plan can be discontinued after the maturity of Recurring Deposit without any penalty.
  • The interest payable, in this case, will be the rate applicable for the period for which the deposit has run during the current renewal cycle.
  • In case of premature close of the account, the following penalty shall apply:

    Premature Closure


    Within 12 months of opening the account

    No interest will be paid to the customer as the minimum period for which NRE term deposit can be accepted is 1 year.

    After 12 months of opening the account

    The interest payable will be at the rate applicable for the period for which the deposit has run, less the applicable penalty of 1%.

  • If the depositor wishes to discontinue the scheme, the principal amount will be paid after deducting necessary charges
  • Loan can be granted against the deposit after considering the balance in the Laxmi Recurring Deposit at the time the loan against the Recurring and Term Deposit is applied for
  • 90% of the account balance can be given as loan at an interest rate 1% higher the rate on the deposit, or higher, subject ot market conditions
  • In case the loan is raised after transferring the Laxmi Recurring Deposit proceeds to the fixed deposit, interest payments would be suspended for the duration of the loan and would instead be credited to the loan account
  • The deposit is subject to compliance with tax laws. Presently, there is no income tax, gift tax or wealth tax for NRE or FCNR Deposits
  • For Laxmi Recurring Deposits, tax deductions at source (TDS) is not applicable to recurring deposits even in the domestic segment


  • The Recurring and Term Deposit can be opened and maintained by any Non Resident Indian (NRI / PIO).

Documents Required

  • All the requisites for complying KYC norms
  • Attested copies of Passport and stamped work permit /visa
  • Two photos
  • Original documents to be verified while opening an account