Eligibility

Residential and Commercial Real Estates registered/ to be registered with Authority of respective State/Union Territory under RERA Act 2016.

Categorization of an Account

a) Account I: (Collection Account) Current Account for receipt of 100% amount related to the project. There shall be auto transfer of total funds lying at time of EOD to Account II and Account III in the ratio of 70:30 respectively. The balance in the account is to be made Nil at EOD mandatorily.
b) Account II: (Remittance Account) Current Account for receipt of 70% amount from Account I, i.e., Collection Account. This account shall be registered with RERA Authority.
c) Account III: (Operative Account) Current Account for day to day operations in which there shall be credit of 30% amount from Account I, i.e., Collection Account. This account can be opened in any scheme of the bank as per customer’s choice. However, customer can opt for credit of 30% funds in their existing CC/OD account instead of Account III.

Documents Required for opening an account

a) KYC Documents in accordance to the Policy for Know Your Customer.
In addition to the above, following documents to be obtained:
a) Undertaking from Promoters for not having availed credit facility from any other Bank(s)/ Financial Institution(s).
b) No Objection Certificate from the concerned Bank(s)/Financial Institution(s) in case credit facilities have been availed by Promoters.
c) Undertaking from the Promoter that no Current Account for the Designated Project has been opened with any other Bank.
d) Duly stamped Agreement between Bank and the Promoter. The Agreement is a mandatory requirement as part of the documents to be executed for opening a Promoters Current Account. Necessary changes in the Agreement as per Local RERA Guidelines can be made in consultation with Circle Law Department.
e) Undertaking from the Promoter that no current account for the Designated Project has been opened with any other Bank.
f) RERA Registration Certificate (may be obtained at a later date if local RERA authority insists for Bank Account before issuance of RERA registration certificate).
g) Project Schedule
h) Copy of Documents submitted by the promoter to the RERA authority at the time of registration.

Monthly Average Balance (MAB)

Account I – Nil
Account II – Nil
Account III – As per the respective schemes of Current Account

Charges for non-maintenance of MAB

Account I – Nil
Account II – Nil
Account III – As per the respective schemes of Current Account

Sweep Facility

Allowed in Account II: Remittance account, if approved by State RERA Authority
a) Threshold: ?2,00,000 in multiples of: ?1,00,000
b) Tenor: 7 days to 179 days
c) Sweep Frequency: On 5th & 25th of every month. If sweep out date is holiday, the same shall be on next working day.
Wherever and whenever State RERA Act permits sweep facility, same will be allowed for the accounts of that particular state.

Operation in the Account

For Account III, it shall be in accordance to the scheme opted.

Documents required for withdrawal from Account II (Remittance Account)

a) As per provision of RERA Act 2016, the funds withdrawn from the registered account have to be utilized for the required purpose i.e., Promoter can withdraw the amount from the captioned account to cover the cost of the Project, in proportion to the percentage of completion of the Project.
b) Accordingly, promoters have to submit request supported by certificates from Engineers, Architects and Chartered Accountants certifying that the withdrawal are in proportion to the percentage of completion of the project.
c) Withdrawal Form cum Undertaking from Promoter, certifying the genuineness of the Chartered Accountant’s/ Engineer’s/ Architect’s certificates.

Closure of the Account

Account I (Collection Account) & Account II (Remittance Account) shall be closed after completion of the Project for which Accounts have been opened as the accounts are project specific.

Account Closure Charges

Account I: Nil
Account II: Nil
Account III: As per bank’s extant guidelines

Additional Points

a) All Statutory information as required under PMLA to be captured. Instructions regarding Beneficial Owner, to be adhered to and no Company to be on boarded, if the Director does not have DIN.
b) Promoter will submit the Names (with signature & seal), Address, Mobile Number and Registration Number of Charted Accountants, Architects and Engineers appointed for the designated project.
c) The promoter must inform to the Bank in case of any change of Charted Accountants /Engineers/ Architects at later stage. Changes, if any, in the certifying entities will be kept with the branch in the designated file.
d) Since a Promoter/Developer may have launched multiple projects, therefore to distinguish the accounts project-wise, the title of account shall be as under:
i. Account I - Collection Account- “Name of Promoter / Developer - RERA Collection A/c - Name of the project”.
ii. Account II - Remittance Account- “Name of Promoter/ Developer- RERA Remittance A/c -Name of the project”.
e) The promoter shall be permitted to close the account after submission of completion certificate issued by the competent authority and completion certificate issued by Project Architect or approval of the Real Estate Authority to that effect as the case may be.
f) Upon receipt of the completion certificate issued by the competent authority and Project Architect, the balance deposited in the RERA designated account i.e. Account II (Remittance Account) can be transferred to the operative account i.e., Account III (Operative Account).
g) Customer(s) have to submit the requisite documents for closure of account or modification of end date as the case may be. Further, one month prior to project end date entered in CBS, an SMS will be sent on RMN of the account holder, informing that the account will be frozen after the end date of the project.