The Sweep-In facility enables customers to link existing Term Deposit to Savings or Current Account held with the bank. In case of an emergency the shortfall in the account is swept in from the linked Term Deposit in the units of Rs. 1/-, thereby giving customer the convenience of getting payments processed with ease.
Let's take an example to illustrate how the Sweep-In facility works:
Mr. Ramesh has availed Sweep-In facility on his existing Term Deposit of Rs. 50,000/- held with the bank.
Let’s assume that on a particular day, the balance in his Savings Account is Rs. 30,000/-, and he issues a cheque for Rs. 50,000/- in his account and it has now come for clearing.
In this instance the shortfall of Rs. 20,000 (Account Balance – Obligation Amount issued as cheque), will be utilized from the linked Fixed Deposit to clear the cheque.