Terms & Conditions governing Savings Accounts

To be read in conjunction with Axis Bank Sri Lanka General Terms and Conditions

Contents
1.

Scope of this document ........................................................................................................................................ 1

2.

Product details and features ................................................................................................................................ 1

3.

KYC / AML diligence .............................................................................................................................................. 5

4.

Complaint handling mechanism ........................................................................................................................... 5

Annexure I..................................................................................................................................................................... 6
Annexure II.................................................................................................................................................................... 7

1.

Scope of this document

This document aims to define the terms and conditions governing acceptance of savings deposits by
branches of Axis Bank Limited in Sri Lanka. For general terms and conditions governing all deposits please
refer to document Axis Bank Sri Lanka General Terms and Conditions.

2.

Product details and features

i.

Account type

ii.

Who
can
account

iii.

iv.

Savings Accounts are Interest bearing operative accounts maintained

with the Bank where the balance is repayable on demand.
open

an 1.
2.
3.
4.
5.
6.
7.
8.
9.
Minimum requirements to 1.
open an account
2.

Individuals including non-residents (Single or Joint);

Minors to be operated by Guardians
Association, Clubs, Societies, Trusts etc.
Executors and Administrators and Liquidators.
Proprietorship Concerns;
Partnership Firms;
Firms and companies;
Corporations;
NGOs.
The primary customer must be aged 18 years or more.
The customer should be able to submit a valid proof of identity and
a valid address and undergo successful checks as per Axis Banks
policies in this regard.
3. Firms and Companies should produce the prescribed documents
establishing the identity and address of the firm / company along
with KYC of Authorised signatories as per regulatory requirements of
Sri Lanka and undergo successful checks as per Axis Banks policies
in this regard. For details refer Annexure II

Mode of operations:
Individual Accounts

1. Singly by the customer; or

2. The Power of Attorney Holder.
Joint Accounts
1. Jointly by all the Holders; or
2. Either or Survivor; or
3. Former or Survivor; or
4. Any One or Survivor.
Proprietorship Firms
1. Singly by the proprietor; or
2. The Power of Attorney Holder.
(Signature of the proprietor under the firms stamp)
Partnership Firms
1. Jointly by all partners; or
2. Either of the partners (where there are 2 partners), as specified by
partnership deed; or
3. Any one partner (where there are more than 2 partners), as
specified by partnership deed; or
4. Jointly by any two (or three or more) of the partners, as specified by
partnership deed; or
5. Singly as specified by partnership deed; or
6. The Power of Attorney Holder as applicable.
Public and Private Limited 1. As per board resolution of the company.
Companies

Page 1 of 10

v.

Minimum deposit amount LKR

USD
AUD
EUR
GBP
JPY

0.00
100.00
100.00
100.00
100.00
10,000.00

Different schemes (under Savings Accounts) will have different

AVERAGE balance requirements.
The Bank has powers to change the minimum balance requirements
from time to time.
All deposits will be in the DBU only.
deposit No maximum deposit limit.

vi.

Maximum
amount

vii.

Currency

All permissible convertible currencies.

viii.

Tenor

Repayable on demand.

ix.

Interest rates

x.

Interest
frequency

xi.

Interest payment method 1. Interest is calculated on a daily basis on the total balance in the
account at the end of the day at the relevant gross rate.

1. Interest rates on deposits The Head Office (Treasury) will be

responsible for setting deposit rates and for reviewing them
periodically.
2. Special rates The Head Office (Treasury) may decide to offer
Special Rates to certain customer segments, subject to regulatory
approvals.
3. Age Based Special rates The Head Office (Treasury) may decide
to offer Special Rates to certain age groups, like Senior Citizens,
subject to regulatory approvals. Such rates will only apply if the
customer has already attained the applicable age at the time of
opening of the account.
4. Interest quote - Interest rates quoted to clients should state the
Gross rate and the Net rate.
Net rate is the rate payable after the deduction of withholding tax
at the highest prevailing rate. As the rate of tax may vary, the net
rate is given for illustration only and is rounded to two decimal
places.
Gross rate means that credit interest is paid without withholding tax
being deducted.
Historic rates - The Bank will maintain and make available to
customers the historic interest rates on deposits.
payment The interest payout on Savings Accounts would be monthly. Interest up
to the end of each calendar month will be paid on the next working
day.

2. Interest on the credit balance will be paid at the Banks prevailing

interest rate for the relevant currency.
The interest will be
calculated on the basis of a 365 day year where the credit balance
is denominated in Sri Lankan Rupees. Please check section xvii
below on withholding tax.
xii.

Review of interest rates

Interest rates for Savings Accounts will be reviewed by the Head Office
(Treasury) on a regular basis.

xiii.

Updation of interest rates

The rates as determined by the Head Office (Treasury) will be updated

in Finacle and the website prior to introduction of the new rates. Latest
interest rates would be displayed at the Branch and the Banks
website.

xiv.

Account Operations

Deposit of Funds
A customer can deposit funds in the Savings Account in the following
ways:
1. by instructing another bank to make an electronic SWIFT transfer;
2. by transfer from an account with another bank to the customers
Account with us through SLIPS;
3. by visiting one of Axis Bank Sri Lanka branches and depositing a
cheque or cash;
4. by Standing Instruction order through another bank;
5. by post with a pay-in slip or letter to the Account holding branch.
Cash should not be sent by post;
6. by depositing cash or cheque into any of the Banks ATMs enabled
with deposit facility located at the Banks branch or elsewhere by
using the account holders own debit card.(All transactions through
ATMs are subject to Terms and Conditions governing use of such
machines.)
Withdrawal of Funds
A customer can withdraw funds from the Savings Account in the
following ways:
1. By transfer of funds through net banking to a specified account at
our Bank in Sri Lanka;
2. By transfer of funds through SLIPS to a specified account at another
Bank in Sri Lanka;
3. By transfer of funds through international electronic transfer (SWIFT)
to a bank account in another country. Please refer to our Schedule
of Charges for further details. The bank receiving the payment may
also impose charges that are outside our control.
4. Direct cash withdrawal from the counter through Withdrawal Slips.
5. By withdrawal from ATMs through debit card.

xv.

Value dating of entries

Value dating of entries will be allowed. To create backdated entry the

branch would need to check the value date of funds received /
remitted by the Bank, and proceed to value date the entry.

xvi.

Loyalty rates

Not Applicable.

xvii.

Tax status - Withholding The customer is required to submit a declaration in the format
Tax
prescribed by the Inland Revenue Department, at the beginning of
the financial year.
The Bank is required to deduct withholding tax from the sum of interest
paid and interest accrued to the customer, based on this declaration
and to deposit this with the Government at prescribed intervals in the
prescribed manner as laid down in Section 133 of the Inland Revenue
Act No 10 of 2006, as amended up to date.
The customer will be provided with a certificate of tax deducted in the
prescribed format. Bank will also maintain all records in the prescribed
manner.
Further details provided in Annexure I

xviii.

Bonus payments

Not Applicable.

xix.

Fees and charges

The Bank has the right to introduce or vary charges after giving the
customer due notice of any change. Please check the Schedule of
Charges for the same.

xx.

Transaction Limits

There is no limit on daily transactions in Savings Account. However,

online transfers from other accounts with Axis Bank Sri Lanka would be
maximum LKR 50,000.00 per transaction per day, where such facility is
provided to the account. For information on limits on daily cash
deposits, and charges applicable to amounts beyond the free limits,
the account maintaining branch may be contacted.

xxi.

Transaction Confirmation

Customers have to check their Account statement and transactions

therein regularly. If any entry appears to be wrong, this needs to be
brought to the notice of the Bank within 30 days of receipt of the
statement. Otherwise, the bank will consider the acceptance of the
statement as accurate.
Customers who have been provided with net banking facility have the
option to check the website / e-mails for confirmation of instructions
given by them through the website.

xxii.

Statements

Printed annual statements for all Savings Accounts including Green

Savings Accounts are issued in April free of charge.
Printed statements are additionally issued periodically to certain
schemes. No printed statements will be issued, periodic or ad-hoc, for
Green Savings Accounts.
Additional printed statements and duplicate printed statements are
issued on a chargeable basis, as per our schedule of charges.
Statements are also issued every month and sent by email to all
eligible Accounts. (For details please check the Terms and Conditions
of the individual schemes). Any account holder can request for
monthly e-statements which are sent only to the email address of the
customer registered with the bank account. Customers who are
registered for internet banking are additionally able to generate,
download and print statements between two given dates through our
internet banking portal.

xxiii.

Closing the Account

The customer may close the account at any time by giving a written
notice.
Details are provided in the document Axis Bank Sri Lanka General
Terms and Conditions.

xxiv.

In the event of death

1. In case of death of the customer (other than joint accounts) the

Bank may close the account and transfer the funds, along with the
accrued interest, if any, to the account nominated in the claim
form submitted by the customers representative or the executor of
the estate.
2. Interest will be paid up to the date of closure, at the rate
applicable for the period / interest slab.
3. In case of joint accounts the remaining holders shall have the
option of continuing with the account. In such cases, the name of
the primary holder will be replaced / substituted in Finacle. This will
be done by the Branch Head and Operations Head only.
The Bank shall always call for a death certificate, grant of probate,
certificate of confirmation and / or grant of representation or any
other document it may deem necessary and sufficient for establishing
the genuineness of any claim before allowing access to any of the
funds in the account.

xxv.

Deposit protection

1. The Bank will be covered by the Sri Lanka Deposit Insurance

Scheme (SLDIS), as per the details in the document Axis Bank Sri
Lanka General Terms and Conditions.

xxvi.

Security
features and Cash withdrawals are to be made using withdrawal slips as per the
access control
prevailing practice in the country. No cash withdrawal should proceed
with uncompleted slips.

xxvii.

Liability

Banks liability is restricted to repayment of the credit balance in the

account along with up to date interest.
Under the SLDIS, eligible depositors are covered to a limit of LKR
200,000.00 per Bank, across all deposits and all currencies.

xxviii.

3.

Inactive and
Accounts

Dormant If the account does not have any CUSTOMER INDUCED transaction in
the account for a period of 12 months, the Bank will classify the
account as inactive and for another 12 months thereafter, it will be
classified as dormant account. The customer will have to contact the
Bank to activate the account.

KYC / AML diligence

The Bank will have a stringent Know Your Customer (KYC) checking policy and no account will be
opened without it being KYC compliant. Regarding KYC/ AML checks the bank will be extremely prudent
and will practice physical verification. Online Banking facility, when enabled, will be only provided to
customers who are fully KYC compliant.

4.

Complaint handling mechanism

The Bank has a system in place for fair and expeditious handling of customers grievances. Customers
may send mail to complaints.slk@axisbank.com for this purpose. For more details, please see Complaint
Handling Procedure in our website.

Annexure I
The regulations governing Withholding Tax for Sri Lanka are summarized below:

All tax calculations pertain to Domestic Banking Unit (DBU) (SOL 921) only.
All tax calculations pertain to Lanka Rupee (LKR) currency only.

The interest from all types of liability accounts (Savings, Term Deposits, and Recurring Deposits) is
considered for withholding tax.
The interest includes interest paid and interest accrued to the applicable accounts.
The withholding tax will be considered at the customer level for the BANK as a whole, and not at the
BRANCH level.
All customers will be required to give the Income declaration in the prescribed form at the beginning
of the financial year.

All COMPANIES are to be taxed at 10.00% only, no slabs, no exempt limits.

All Certificates of Deposit (CD) are to be taxed at 10.00% only, no slabs, no exempt limits.
All PARTNERSHIP FIRMS are to be taxed at 8.00% only, no slabs, no exempt limits.
All CHARITABLE TRUSTS income declaration can have two slabs
Interest up to LKR 500000.00 NIL.
Interest above LKR 500000.00 8.00%.
All INDIVIDUALS customer income declaration can have three slabs
Interest up to LKR 500000.00 NIL.
Interest above LKR 500000.00 up to LKR 1500000.00 2.50%.
Interest above LKR 1500000.00 8.00%.

In case of JOINT HOLDERS, if there is no mandate from the customer, the interest is to be equally
apportioned amongst all the joint holders.
In case of SAVINGS ACCOUNTS only for individuals and charitable institutions, the interest up to LKR
5000.00 PER MONTH PER CUSTOMER is exempt from tax.
If an individual has more than one savings account, then the exemption of LKR 5000.00 per month is
for one account only. This account number has to be mentioned by the customer and captured by
the system.

Even if the declaration by the individual customer is different from the interest ACTUALLY earned from
the bank, tax will be deducted on the basis of the declaration, and not as per the actual accrued
interest amount. In such cases a report will be required so that the users can contact the customers
for a revised declaration.
In case the declaration by the charitable institution is different from the interest ACTUALLY earned
from the bank, tax will be deducted on the basis of the declaration, and not as per the actual
accrued interest amount. In such cases a report will be required so that the users can contact the
customers for a revised declaration.

Annexure II
DOCUMENTS REQUIRED BY THE BANK
The following table details the documents that are required to open an account.
Please ensure that all documents mentioned below are submitted along with the Account Opening Form
Limited
Documents / Requirements

Companies &
Corporations

Partnerships

Sole
Proprietorships

Clubs,
NGOs,
Societies
Trusts

&

Individuals

Account Opening Form

Identification Document

Address Verification Document

Valid Visa
applicable)

Permit

(As

Business Registration /
Certificate of Incorporation /
Certificate to commence
business (As Applicable)

Constitution / Charter / Trust

Deed

Articles of Association

Mandate / Board Resolution (As

Applicable)

List of Directors / Partners /

Proprietor Information Document

Form 40 or Form 1 / Form 20 /

Form 18 (As Applicable)

Form 44 / Form 45 *

Copy of Agreement with BOI u/s

Section 17 and Certificate **

Approvals from Export

Development Board and / or
from Exchange Control
Department as applicable ***

Approval from relevant

Government Ministry / Authority

Partnership Agreement

Documents
received by
the Bank

All original Documents to be sighted by any official of Axis Bank.

For Offshore Companies

**

Requested for accounts to be opened in Foreign Currency Banking Unit (FCBU) - In the name of Companies Incorporated in Sri
Lanka and authorized to open accounts in the FCBU.

***

For Exporters' Foreign Currency Accounts.