RERA Current Account - Business

Features , Benefits and Advantages

• Type of Account : Current Account to meet the requirements of Realtors who are looking for a product to meet the provisions of RERA Act 2016.
• Purpose : Realtor’s Current Account for the Purpose of RERA Act 2016.
  (Specifically designed for depositing the minimum 70% of Realtor’s Collections from Investors and Buyers).
• Style of Account : Account 1: Realtor’s Current Account for receipt of 100% Collections [Auto transfer to Account 2 and Account 3 in the ratio of 70:30 at end of day (eod)]
  Account 2: Realtor’s Current Account for depositing minimum 70 % of Collections ( funds to be transferred from Account 1 ). This account will be registered with RERA Authority 
  Account 3: Realtor’s Current Account for Day to Day operations for receiving 30%of Collections(funds to be transferred from Account 1). However, Realtors may decide for transfer of 30% of Collections to their other Operating CC/OD account instead of Current Account 3.
  
  Special Cases:
  • Realtor Project financed by our Bank : 30% of the Collections from buyers as well as funds after withdrawal from Account 2 (70% of Collections) will be credited to the Escrow Account . The funds from Escrow Account will be transferred to Realtor’s Operating Account i.e. Current Account/CC/Overdraft, after adjusting Bank’s dues as per Terms and Conditions of sanction.
  • Request for only Account 2 : A single current Account (i.e. Account 2) for the minimum 70% of collections from Buyers can be opened in case specific requests are received from Realtors. Agreement will be amended accordingly.
  • Separate Current Accounts for Taxes /other fees (If permitted by respective State RERA Authorities): Realtors may request the Bank for opening of a Separate Current Account for deposit of Taxes / Other Fees related to purchase of flats from buyers etc.
• Eligibility : Realtors of Residential and Commercial Real Estates registered/ to be registered with Authority of respective State/Union Territory under RERA Act 2016.
• Monthly Average Balance (MAB) :

  Type of A/c	MAB (in Rs)	Remarks
  Account 1	NIL	The balance will be zeroised at end of day.
  Account 2	10,000/-	The a/c will have Sweep and Reverse Sweep facility. Sweep parameters defined separately. Sweep Balance will not be factored for calculating MAB.
  Account 3	10,000/-	NA

  
  Sweep facility to Term Deposits: Parameters
  Sweep Facility to Term Deposits allowed only if permitted by concerned RERA Authority for the State .
  • Threshold balance: Rs 2,00,000/-
  • MOD created for minimum amount of Rs 1,00,000/- (and in multiples of Rs 10,000/-) at any one instance.
  • Resultant Balance : Rs. 1,00,000/-
  • Sweep facility to MODs will be allowed once in a week on Monday.
  • Prepayment penalty will be applicable as in case of normal Term Deposits.
  System driven checks for MODs created:
  a) By default, any proceeds of the MOD will be credited back to Account 2 only.
  b) No lien can be marked on the MODs created out of Account 2 (Lien against loan will not be allowed, however if the same is requested by RERA/Regulators/Legal or Income Tax Authorities, in case of fraud etc. would be allowed.)
  c) No loan can be granted against such fixed deposits nor any charge created.
• Fee for managing the A/c : Usual account maintenance charges. No separate fee to manage the Account at present.