Bajaj Finance Limited Fixed Deposit Standard Operating Procedure (SOP)

This document outlines the Standard Operating Procedure (SOP) for opening, managing, and closing Fixed Deposits (FD) with Bajaj Finance Limited (BFL). The SOP is intended for branch staff, relationship managers, and backoffice personnel to ensure uniformity, compliance, and a superior customer experience.

1. Scope & Applicability

The procedure applies to all Bajaj Finance branches and authorized digital channels that offer Fixed Deposit products to retail and corporate customers in India.

2. Definitions

• Fixed Deposit (FD): A safeinterest bearing deposit in which the principal amount is locked for a predetermined tenure.
• Tenure: The period for which the FD is held ranging from 7 days to 10 years.
• Interest Credit: The method by which accrued interest is paid either Monthly, Quarterly, HalfYearly, or Maturity.
• KYC: Know Your Customer mandatory identity verification as per RBI guidelines.

3. Prerequisites

1. Customer must be KYCcompliant (Aadhaar, PAN, address proof).
2. Minimum deposit amount: INR1,000 for retail and INR10,000 for corporate.
3. Valid bank account (BFL or thirdparty) for interest credit and principal repayment.
4. Compliance check AML screening must return a Clear status.

4. StepbyStep Process

4.1 Customer Inquiry & Eligibility Check

• Explain the FD product range, interest rates, tenure options, and tax implications.
• Confirm the customer's eligibility using the internal eligibility matrix.
• Obtain verbal consent to proceed with the application.

4.2 Documentation Collection

Collect the following from the customer (original + photocopy where required):

1. Signed FD application form (available on the intranet).
2. KYC documents PAN, Aadhaar, Passport/Driving License (photo ID), and address proof.
3. Cancelled cheque or a copy of the bank statement of the account to receive interest/principal.
4. For corporate Board resolution, Certificate of Incorporation, and authorised signatorys ID.

4.3 Data Entry & System Validation

Enter the information into the Bajaj Finance Core Banking System (BFCBS):

• Customer ID, account number, and KYC status.
• FD amount, tenure, interest rate, and interest credit frequency.
• Preferred mode of interest payout (Bank Transfer/Direct Credit).

If the system flags any discrepancy (e.g., insufficient balance, mismatched KYC), resolve before proceeding.

4.4 Risk & Compliance Review

• Risk team verifies the source of funds and flags large or unusual deposits as per AML policy.
• Compliance checks the FD against the RBIs Maximum Deposit limit for Individuals and Deposits in name of Minor rules.
• Record the compliance decision in the audit trail.

4.5 Approval Workflow

Depending on the deposit amount, the following approvers are required:

Send an automated approval request via the workflow engine. Approval must be recorded digitally.

4.6 Confirmation & Issue of Deposit Receipt

• Generate the FD Receipt (PDF) containing FD number, amount, tenure, rate, maturity date, and interest payout schedule.
• Obtain customers signature on the receipt (digital or physical).
• Send a copy to the customer via email/SMS and store the original in the branch safe.

4.7 Fund Transfer & Activation

Initiate fund transfer from the customers linked account to the FD account:

1. Validate that the transferred amount matches the FD amount.
2. Post the transaction in BFCBS with FDCreated status.
3. Confirm activation within 30 minutes; otherwise, raise a ticket with the IT support team.

4.8 Ongoing Management

• Periodic interest posting as per the selected credit frequency.
• Provide statements on request through branch or digital portal.
• Handle premature withdrawals only under RBIpermitted circumstances (e.g., medical emergency) and apply penalty as per the rate sheet.

4.9 Maturity & Closure

1. On maturity date, generate a Maturity Notice 7 days prior.
2. Customer may choose one of the following:
   • Autorenew for the same tenure.
   • Renew for a different tenure/rate.
   • Withdraw the principal and accrued interest.
3. Process the chosen action, update the system, and issue a final receipt.
4. Close the FD account and archive documents as per the records retention policy (7 years).

5. Roles & Responsibilities

• Branch Executive: Initial customer interaction, documentation collection, data entry.
• Relationship Manager: Eligibility verification, risk assessment, and approval escalation.
• Risk & Compliance Officer: AML screening, sourceoffunds verification, regulatory compliance.
• Operations Team: Fund transfer, system posting, and settlement.
• IT Support: Maintain BFCBS uptime, resolve workflow exceptions.

6. Key Performance Indicators (KPIs)

7. Exceptions & Escalations

• System Downtime: Log a manual FD in the Exception Register and notify the Branch Manager. Complete electronic entry within 24 hours of system restoration.
• Disputed Interest Calculation: Forward to the Finance Control team with supporting documents. Resolve within 5 business days.
• NonCompliance Flag: Escalate to the Regional Compliance Head within 1 working day; follow the Compliance Breach Action Plan.

8. Documentation & Record Keeping

All FD related documents (application, KYC, approval screenshot, receipt, and maturity notice) must be retained in the electronic document management system (EDMS) under the customers master file. Physical records, if any, should be stored in a fireproof safe for a minimum of 7 years.

9. Training & Awareness

All staff handling FD operations must undergo:

• Initial onboarding program 4 hours.
• Quarterly refresher on regulatory updates 2 hours.
• Annual audit simulation 1 hour.

Certificates of completion are to be uploaded to the HR Learning Management System.

10. Review & Revision

This SOP shall be reviewed annually or whenever there is a change in RBI regulations, interest rate policy, or internal risk frameworks. Revision history must be logged, and the latest version distributed to all branches and digital channels.