UBI to launch 'Union Cash Certificate'

Thiruvananthapuram, Sept 1: Union Bank of India, a leading nationalised bank in the country, will launch a new deposit product, 'Union Cash Certificate' to augment its resources in the medium term, its Assistant General Manager K M Purushothaman said today.

Addressing a media conference here, he said the scheme was ideal to plan for education of children, marriage in the family, for a secure retired life and to meet any contingency.

Describing the salient features of the scheme, Mr Purushothaman said cash certificates would be issued in nine denomination of Rs 5,000, Rs 10,000, Rs 25,000, Rs 75,000, Rs one lakh, Rs three lakh, Rs five lakh and Rs 10 lakh.

The deposit would attract a rate of interest of eight per cent per annum. The annual yield on the deposit for a period of 36 months, 48 months and 60 months worked out to 8.94, 9.32 and 9.72 per cent respectively, he said, adding that in the case of senior citizens, an additional 0.50 per cent interest would be offered over the interest rate of eight per cent.

Under the scheme, if a person wanted to deposit Rs five lakh for 60 months, he or she had to pay only Rs 3,36,486 and the bank would issue certifiates for a maturity value of Rs five lakh, he said.

In case of senior citizens, they needed to pay only Rs 3,28,344 to get the face value certificate of Rs five lakh during the same period, he added.

Mr Purushothaman said premature withdrawal of the deposit would be permitted as per the existing policy. Also, loan and overdraft facility, upto 90 per cent of the deposit amount with accrued interest, would be available to the depositors.

The scheme would be open for subscription from September one and would be closed on October 31.

The AGM said an amout of Rs 3,500 had been targeted under the product, which targeted the entire spectrum of small, middle and high net earners.

UNI