Central Bank of India offers several different types of financial products to their customers, including investment options like recurring deposits. Central Bank of India recurring deposit was introduced in 1962 and is considered as one of the best RD policies offering high assured returns today.

Types of Central Bank of India Recurring Deposits

Central Bank of India offers a few different types of recurring deposits. Customers can pick the ideal investment instrument according to their asset appreciation requirement and financial standing. 

Here are the different products. 

  • Recurring Deposit Scheme – This is the standard Central Bank of India recurring deposit availed by both residents and NRIs. Senior citizens, staff and widow of staff, and senior citizen ex-employees of Central bank can enjoy an additional 0.5%, 1%, and 1.5% interest rate per annum over and above the applicable rates.
  • Cent Swashakti Flexi Recurring Deposit Scheme – Cent Swashakti allows opening an RD account with as low as Rs.100 (maximum Rs.10 lakh deposit allowed every month). Interest is calculated on monthly investments and is credited every six months. Customers can also avail loans of up to 90% of the deposited amount plus accumulated interest.

A unique benefit of this policy is that it allows a customer to deposit additional funds at any month. Moreover, no penalty fee is charged for a delayed deposit or premature withdrawal of the invested amount.

  • Cent Lakhpati Recurring Deposit – Cent Lakhpati RD scheme in Central Bank of India allows a customer to gain over Rs.1 lakh upon scheme’s maturity. Customers will have to deposit a variable amount depending on the remaining tenor of the deposit.
  • Cent Millionaire Recurring Deposit – Cent Millionaire allows customers to invest a fixed amount every month in their RD account in Central Bank of India for a fixed tenor (10 years). The total maturity amount exceeds Rs.10 lakh, and the applicable interest rate stands at 6.55% per annum.

Eligibility Criteria for Opening an RD

Customers need to fulfil certain eligibility requirements to open a recurring deposit with Central Bank of India, as enumerated below – 

  • Any Indian resident can opt for an RD in his or her name. Individuals can also opt for joint recurring deposits if required.
  • Minors are eligible to open an RD with their legal guardians. Minors over the age of 10 (who can read and write) are eligible to operate the account personally. In this case, the maximum monthly instalment should not exceed Rs.500, and the maturity sum should not exceed Rs.50,000.
  • Any charitable and educational foundations that do not operate or conduct any business of commercial nature are also eligible to avail RD scheme in Central Bank of India.
  • Hindu Undivided Family, differently-abled individuals and persons with special needs are also eligible to open a recurring deposit.
  • Private traders, agents, professional partnership firms, society, corporate bodies, company clubs, merchants, etc. are also eligible to open a recurring deposit.

Documents Required to Open a Recurring Deposit Account

Prospective customers have to submit certain documents to open an RD account in Central Bank of India. These include identification proof, proof of address, PAN details, etc. 

  • Proof of identification – A customer can submit any one of the following documents with their application – 
      1. Passport.
      2. Aadhaar Card
      3. Driving license 
      4. Voter ID 
      5. An ID card issued by the Government of India or any other reputed private-sector employer.
  • Proof of address – The following documents will be accepted as proof of address – 
    1. Utility bills, such as postpaid phone bills, electricity bills, etc.
    2. Aadhaar Card.
    3. Recent bank account statement.
    4. Acknowledgement letter from employer.
    5. Acknowledgement letter from any recognised local authority or public institution.
    6. A copy of income tax or wealth tax assessment. 
  • Age proof – Only senior citizens and minors applying for Central Bank of India RD scheme need to present their age proof. Individuals can submit any of the following documents.
    1. Passport.
    2. Voter ID Card.
    3. Birth certificate.
    4. Driving License.
    5. Certificate for discharge from service.
    6. Beneficiaries from pension plans can also submit their PPO.

Additionally, all applicants will have to submit two recent passport-sized photographs while applying for an RD account.

The above mentioned requirements will not be applicable to existing customers of the Central Bank of India. 

Interest Rates on CBI RD

Interest rates offered by the Central Bank of India against their recurring deposit account are mentioned below. Investors can also use an online CBI RD calculator to determine the exact return corresponding to the rate of interest and investment tenor. 

Investment tenor The applicable interest rate for an ordinary customer The applicable interest rate for senior citizen customer
180 days to 270 days 6.55% 7.05%
271 days to 364 days 6.55% 7.05%
1 year to less than 2 years 6.65% 7.15%
2 years to less than 3 years 6.55% 7.05%
3 years to less than 5 years 6.55% 7.05%
5 years to less than 10 years 6.55% 7.05%

Premature Withdrawal of CBI RD – Terms and Conditions 

Penalty applicable for premature withdrawal of the accumulated sum will be determined according to the applicable clauses. 

For some investments, a penal sum is charged in case of delayed payment towards the recurring deposit. A flat rate of Rs.1.50 per Rs.100 per month is charged if the investment period is up to 60 months, and Rs.2.00 per Rs.100 per month is charged if the investment tenor is lover 60 months. 

Special Forms 

Interest generated on RD schemes is subject to TDS deductions at 10%. However, individuals and senior citizens having total interest income from all sources lower than Rs. 40,000 and Rs. 50,000 respectively are eligible for full TDS rebate. They are required to submit Form 15G and 15H (senior citizens) with the Central Bank of India for this purpose.

Loan Facility against Recurring Deposit

Loan or advance against the invested amount is available under these schemes. Customers can avail up to 90% of the deposited amount. Interest rates charged on such loans is 1% higher than the compounding rate of interest on RDs. 

Advantages of Investing in Central Bank of India RD Scheme

There are several benefits of opening an RD account with Central Bank. These include – 

    • Recurring deposits are considered as the best form of investment for starters. Customers do not need to deposit a lump sum initial sum and can deposit small amounts on a regular basis. 
    • A monthly instalment of a fixed sum of Rs.100 can be deposited to open an RD account in Central Bank of India
    • Recurring deposit accounts are independent of market fluctuations, ensuring assured returns at the end of the investment period. 
    • Customers can enjoy a rate of interest similar to that of an FD account, substantially higher than a bank savings account. 
    • Individuals can opt for a flexible tenor that suits their unique financial requirements.
  • Central Bank of India recurring deposit offers loan facility, allowing an individual to secure monetary backing at times of need.

Central Bank of India recurring deposit is a convenient investment option, ideal for individuals who do not have accumulated funds to capitalise on instruments like a fixed deposit. Monthly instalment feature, attractive interest rates, flexible tenor and minimum deposit facility, is a beneficial feature of this RD scheme, while the provision to avail a loan against the invested amount allows customers to secure finances without liquidating their entire investment.


  • What are the clauses related to payment of the instalments?

Ans – Instalment made towards the Central Bank of India recurring deposit can be made on any day before the due date of every month. Customers will be issued a special passbook, carrying all details like the name and deposit account number, CIF number, instalment amount, investment tenor, deposit date, interest rate, and total maturity value.

  • Can one avail automatic deposit facility?

Ans – Customers can provide standing instructions banks to automatically transfer the monthly instalments from their bank account to the RD account without any additional fees. 

  • What happens upon maturity of an RD scheme?

Ans – Upon maturity, customers can receive a maximum of Rs.20,000 in cash. Any additional sum is credited to the customer’s account or given out as Demand Draft.

  • Is there any renewal facility available?

Ans – Customers can opt to reinvest the sum accumulated in the RD account in Central Bank of India after the maturity period. Central Bank allows reinvestment in any of the other Term Deposits available. Customers will enjoy the present applicable rate of interest for that scheme, or the rate applicable for the RD account, whichever is less. 

  • Is there any clause associated with the deposit amount?

Ans – A minimum of Rs. 100 every month has to be deposited in an RD. Investors can put in any sum in the multiples of Rs. 50.

  • Is TDS applicable on RD?

Ans – TDS at 10% is applicable on the interest earnings. In case an individual fails to provide his/her PAN details, tax is deducted at 20% of the total earnings.

  • Can an investor redeem their RD before the end of the term?

Ans – Premature withdrawal is available against a penalty rate. The total interest will be calculated based on the rate applicable on the date of the deposit, till the period it was with the bank.

  • What is the applicable interest rate on RD?

Ans – The interest rate is similar to the rates applicable for fixed deposits. 

  • Is internet banking facility available on recurring deposits?

Ans – Net banking facility is available with Central Bank of India recurring deposit scheme.

  • What documents will be provided against a recurring deposit?

Ans – An RD passbook will be provided to customers against their investment.