The corporate deposit ecosystem, like many others in our country, previously involved physical steps when it came to managing it. Ordinarily, tasks such as physical document submission and branch visits are not difficult, but the same has become unsafe during Covid times. To help customers, NBFCs have stepped up their digital game in the deposit management space. Right from opening fresh deposits, to renewals and top-ups, almost all the processes can now be done online.

Opening accounts

Depositors can open new corporate deposit accounts with many NBFCs such as Bajaj Finserv, Mahindra Finance and HDFC completely online. In case you are a new customer, electronic KYC (e-KYC) becomes central to this process. e-KYC can be done by providing PAN or Aadhaar. Or else, you can simply upload documents. To get more clarity, you can check the demo videos either on the company websites or YouTube channels.

Once KYC is done, you can enter the deposit amount, choose tenor and interest payout type, and submit bank account details. Then, the payment needs to be done. Do note that payments above ₹1 lakh need to be done by net banking. In case of third-party bank transfers, the depositors’ individual banking limits should be known before effecting transfers. Upon successful payment, your deposit will be booked and you’ll receive an acknowledgement. Mahindra Finance allows a rapid investment feature where a new investor, registered in central KYC, can invest in six steps.

Top-up deposits

For existing customers, the online management becomes even easier. This is because the system already knows you. Depending on the company, you can log in credentials. For instance, Bajaj Finserv asks for customer ID or email ID or mobile number. The deposit platform of HDFC asks for PAN and date of birth. In this case, an OTP comes to your registered mobile number and you need to submit it to proceed.

NBFCs such as Sundaram Finance recently launched online renewals and acceptance of additional deposits only for existing deposit holders. In case of Sundaram, existing customers have to send an email to avail this facility along with their customer ID so that the company can enable access. After a one-time registration, one can open additional deposits. “Individual depositors can place an additional deposit to their existing deposit account(s). The order of names, bank details and nominee details of the existing deposit must be the same when placing an additional deposit,” reads a Sundaram Finance communique.

In case you have not registered your bank account, NBFCs provide the facility to email the details along with scanned copy of cancelled cheque/first page of passbook. Also, if there are joint holders of an existing deposit, any additional deposit creation process will require authentication from both parties.

For continuity of matured deposit without any break in interest, top-up should be made within maturity date.

Online renewals

When filling FD application form, one can choose to auto-renew one’s deposit, spared from the hassle of renewals. In fact, in some companies, auto-renewal earns an additional interest rate benefit for deposits.

But industry sources indicate that just about 50 per cent of depositors tick the option of auto-renewal.

This is because customers may choose to be nimble on their feet and decide from among options that give good rates for a certain risk profile, rather than renew with the same entity.

However, for those looking for the convenience, NBFCs allow individual depositors to renew their existing deposits online.

The online process is user-friendly, and designed in such a way that customers will take not more than 2-3 minutes to complete their transaction, says Dilip Shetty, associate member of executive management, HDFC.

After entering the website as an existing customer, depositors can, with a few clicks, choose to renew the deposit(s) from their personal dashboard.

Some NBFCs also allow existing depositors to use the online system to submit Form 15 G/H, inclusion/modification of bank details by uploading necessary documents, view/download interest estimation for advance tax and modification of registered mobile number.

Besides, some also allow online premature deposit withdrawal, loan against deposit, download of account statements, etc.

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