It is a recurring deposit scheme in which a customer is required to deposit a pre determined amount monthly on a regular basis for a fixed period opted by him while opening the account. A sizable lump sum amount is paid to the customer along with interest on maturity. A minimum amount of Rs.50/- per month is required to be paid for the period of deposit opted while opening the account. The deposits under the scheme are accepted for a minimum period of 12 months and maximum of 120 months.
If an amount of Rs.515/- is paid monthly for a period of 120 months the customer will get an amount of Rs.100000/-on maturity. Similarly if an amount of Rs. 1335/- is paid monthly for a period of 60 months the customer will get an amount of Rs. 100000/- on maturity. TDS will be deducted if the amount of interest in a financial year exceeds Rs. 40,000/-. If you do not want to pay TDS you will have to submit Form 15G/H along with a copy of PAN card every year.