RERA

Overview

The RERA Act makes it mandatory to the promoters to deposit 70 per cent of customer advances or project funds into a separate dedicated project account so that these funds are utilized for acquisition of land as well construction of the related project.

The withdrawals from the account need to be certified by the project engineer, architect and chartered accountants and these accounts are to be audited every financial year and copy of the same needs to be submitted to the authority. This mechanism ensures that the customer advances are not diverted towards other project development and the promoters do not delay the project on account of lack of funds.

Salient Features

  • The Project Receivable RERA account shall be opened as an ESCROW operation account and operated in the following manner:
    • 100% of the project receivables collected shall be deposited into the Project Receivable RERA account.
    • The Bank shall, at EOD every day, transfer the balance in the Project Receivable RERA account in the following manner through a “standing instruction”;
      • 70% of the amount in the Receivable account shall be transferred to the Project Designated RERA account.
      • Balance 30% of the amount in the Project Receivable RERA account shall be transferred to the Promoter/Developer/Builder’s current account.
  • The Project Designated RERA account shall be opened as an ESCROW operation account with account operations subject to the following guidelines:
    • All transactions in the account shall be in accordance with the norms given in the RERA Act, as in the funds must be used for land acquisition, building, and project completion only.
    • Credits, as mentioned above, would be initiated by the Bank on a “standing instruction” basis at EOD every day from the Project Receivable RERA account.
    • Each withdrawal/transfer from the Project Designated RERA Account shall be made on receipt of a request letter from the Promoter, signed by the authorized signatory of the Promoter (i.e. Project Engineer, Architect & Chartered Accountant)
  • The Promoter/Builder/Developers account shall be opened as a Lakshmi Current Flexi account, or any current account as requested.

Eligibility

  • Projects having a built-in space of a minimum of 500 square meters or 8 flats
  • For projects where completion certificate has not been received
  • Does not include renovation and repair, provided it does not involve marketing, advertising or selling

Documentation

  • All extant KYC guidelines applicable to opening Current Accounts shall be adhered to.
  • In addition following documents to be collected:
    • RERA Registration
    • Annexure - I
    • Project Schedule
    • Copy of Documents submitted by the promoter to the authority at the time of registration
    • RERA Agreement, which stipulates the conditions governing account operation on stamp paper

Charges

Sr.No Particulars Project Receivable
RERA account
Project Designated
RERA account

1

Average Quarterly Minimum Balance NIL NIL

2

Cash Remittance 
At base & Non-base branch Not Available Not Available

3

Cash withdrawal (by self & Third party) 
At base & Non-base branch Not Available Not Available

4

Inward Clearing Charges  
At base branch Not Available Not Available
At Non-base branch Not Available Not Available

5

Outward Clearing Charges 
At base branch Free Not Available
At Non-base branch Free Not Available

6

Collection charges for Outstation cheques (OCC-Outward Cheque for Collection) Free Not Available

7

Inward Clearing Return Charges 
At base branch & Non-base Branch Rs.200/- per return for Insufficient funds

8

 Outward Clearing Return Charges
At base branch Free Not Applicable
At Non-base branch Free Not Applicable

9

DD/PO Charges Free Not Applicable

10

RTGS/NEFT Not Available Free Up to Rs.50.00 lacs per
day with max.
5 transactions (RTGS/NEFT together),
thereafter RTGS
Rs.2 to Rs.5 lacs-           Rs.25/-
Above Rs.5 lacs-      Rs.50/-NEFT
Up to Rs.1 lac-             Rs.5/-
Rs.1 to Rs.2 lacs-            Rs.15/-
Above Rs.2 lacs-        Rs.25/-

11

RERA Account maintenance charges Rs.25,000/ + GST (One time at the time
of account opening)*

12

Folio Charges Free Free

13

Cheque Book Not Available Not Available

14

Statement of Account Free Free

15

Debit Card Not Available Not Available

16

Stop Payment Not Available Not Available

17

SMS Alerts Free Free

18

Net Banking Facility Not Available Not Available

19

Transfer of funds between CBS branches Free Free

20

IMPS (Handy Pay) Not Available Not Available

 

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