Refund and Cancellation Policy
Last Updated: October 2025
This Refund and Cancellation Policy outlines the terms and conditions for withdrawals, premature closures, and cancellations of services at Reja Indian Nidhi Limited. Please read this policy carefully to understand your rights and obligations.
1. Deposit Withdrawals
1.1 Maturity Withdrawals
When your deposit reaches maturity:
- Principal amount plus accrued interest will be paid as per deposit terms
- Payment will be processed within 15 working days from the maturity date
- No penalties or deductions apply
- Interest calculated as per the agreed rate
- Payment made via bank transfer, cheque, or cash (subject to limits)
- Auto-renewal option available if opted at time of deposit
1.2 Premature Withdrawals (Before Maturity)
For deposits withdrawn before the maturity date:
- Lock-in Period: Minimum 3-6 months must be completed before premature withdrawal
- Interest Calculation: Interest will be calculated at reduced rates (typically 1-2% lower than maturity rate)
- Penalty Charges: 1-2% penalty on the deposit amount
- Notice Period: 7-15 days written notice required
- Processing Time: 7-14 working days after notice period
- Approval: Subject to company approval and fund availability
Premature Withdrawal Example:
Original Deposit: ₹1,00,000 for 3 years at 9% p.a.
Withdrawal after 1 year:
• Interest calculated at 1-year FD rate (e.g., 7% instead of 9%)
• Penalty of 1% (₹1,000) deducted
• Net amount payable: ₹1,06,000 (approximately)
1.3 Partial Withdrawals
Partial withdrawals from deposits may be permitted subject to:
- Minimum balance of ₹10,000 must be maintained
- Maximum 2 partial withdrawals per financial year
- Processing fee of ₹0-0 per withdrawal
- Prior written approval from management
- Available only for deposits above ₹500
2. Recurring Deposit Discontinuation
2.1 Premature Closure
- Can be discontinued after completion of at least 6 monthly installments
- Interest calculated on completed installments at savings account rate
- Penalty of 1% may apply
- 15 days notice required
2.2 Default in Installments
- Late payment charges: ₹0 per missed installment
- Grace period of 15 days after due date
- After 3 consecutive defaults, account may be closed
- Amount refunded with reduced interest 7%
3. Loan Cancellations
3.1 Before Loan Disbursement
If you wish to cancel your loan application before disbursement:
- Submit written cancellation request to the branch
- Processing fees paid (₹500-2000) are non-refundable
- Valuation and legal charges (if paid) are non-refundable
- No interest or other charges apply
- Cancellation effective immediately upon receipt of request
- Documents will be returned within 7 working days
3.2 After Loan Disbursement (Foreclosure)
Once the loan amount has been disbursed:
- Full loan amount plus accrued interest must be repaid
- Foreclosure charges: 2-4% of outstanding principal
- Minimum 6 EMIs must be paid before foreclosure
- Interest calculated till the date of closure
- Processing and documentation fees are non-refundable
- 15 days notice required for foreclosure
- No-objection certificate issued after full payment
4. Membership Cancellation
To cancel your membership with Reja Indian Nidhi Limited:
- All outstanding loans must be cleared in full
- All deposits must be withdrawn or transferred
- Submit written membership cancellation application
- Membership fees paid are non-refundable
- Share capital will be refunded as per company bylaws after deducting liabilities
- Process takes 10-15 days for completion
- Board approval may be required
5. Standing Instructions Cancellation
- Can be cancelled with 7 days written notice
- No charges for cancellation
- Changes take effect from the next billing cycle
- Confirmation sent via SMS/email
6. Refund Processing
6.1 Mode of Refund
- Bank Transfer (NEFT/RTGS): Refunded to registered bank account
- Cheque: Issued in the name of account holder
- Cash: Available for amounts up to ₹50,000 (subject to availability)
6.2 Processing Timeline
| Transaction Type |
Processing Time |
| Maturity Withdrawal |
5-7 working days |
| Premature Withdrawal |
10-14 working days |
| Loan Cancellation (Pre-disbursal) |
7 working days |
| Membership Cancellation |
30-60 days |
| RD Premature Closure |
7-10 working days |
7. Non-Refundable Items
The following fees and charges are non-refundable under any circumstances:
- Loan processing fees
- Membership admission fees
- Documentation and legal charges
- Valuation fees
- Service charges for completed transactions
- Late payment charges and penalties already paid
- Third-party charges (stamp duty, registration, etc.)
8. Special Circumstances and Exceptions
Exceptions to standard refund/cancellation policy may be considered in:
8.1 Death of Member
- Immediate closure of accounts permitted
- No penalties or premature withdrawal charges
- Payment to legal heirs or nominees
- Required documents: Death certificate, legal heir certificate, indemnity bond
- Processing time: 15-30 days after document submission
8.2 Medical Emergencies
- Reduced penalty charges (50% waiver) may be considered
- Medical certificate from registered hospital required
- Subject to management approval
- Emergency processing within 3-5 working days
8.3 Court Orders
- Immediate processing as per court directives
- No penalties if withdrawal mandated by court
- Processing as per legal requirements
8.4 Company Error
- Full refund without any deductions
- Processing within 7 days of error identification
- Compensation for any loss due to company error
Important Timelines:
• Notice Period for Premature Withdrawal: 7-15 days
• Loan Foreclosure Notice: 15 days
• Membership Cancellation: 30 days notice
• RD Discontinuation: 15 days notice
• Standing Instruction Cancellation: 7 days
• Refund Processing: 7-21 working days
9. How to Request Refund/Cancellation
Follow these steps to initiate a refund or cancellation:
- Visit Branch or Download Form: Obtain the refund/cancellation request form
- Fill Complete Details: Provide account number, member ID, reason for request
- Attach Documents: ID proof, passbook, deposit receipt, loan papers (as applicable)
- Submit Application: At branch or via registered email
- Acknowledgment: Receive acknowledgment with reference number
- Verification: Company verifies details and processes request
- Approval: Receive approval notification via SMS/email
- Payment: Collect refund as per chosen mode
Required Documents:
• Signed refund/cancellation request form
• Original deposit receipt / loan agreement
• Passbook or account statement
• Identity proof (Aadhaar/PAN)
• Cancelled cheque (for bank transfer)
• Additional documents for special circumstances
10. Grievance Redressal
If you are dissatisfied with refund/cancellation processing:
- Level 1: Contact branch manager within 7 days
- Level 2: Email grievance officer if unresolved within 15 days
- Level 3: Written complaint to Managing Director
- Timeline: Response within 7 working days at each level
- Final Resolution: Within 30 days of initial complaint
11. Force Majeure
Processing times may be extended due to events beyond our control, including:
- Natural disasters (floods, earthquakes, pandemics)
- Government actions or policy changes
- System failures or technical issues
- Banking holidays and strikes
- War, civil unrest, or emergencies
In such cases, we will notify members and process requests as soon as reasonably possible.
12. Important Notes
- All refund amounts are subject to TDS deduction as per Income Tax Act
- Interest earned is taxable and will be reported to tax authorities
- Form 15G/15H can be submitted to avoid TDS (if eligible)
- Refund policy is subject to change with prior notice
- Company reserves the right to modify terms with board approval
