Karnataka Grameena Bank New Nithya Nidhi Deposit

Karnataka Grameena Bank is the state's single regional rural bank. It was formed on 1 May 2025, when Karnataka Vikas Grameena Bank and Karnataka Gramin Bank were amalgamated into it under a Central Government notification, with its head office in Ballari and Canara Bank as sponsor. Every deposit account at the two older banks moved to it on that date; our guide to what happens when your bank merges explains what that meant for daily-deposit savers.

Its daily-deposit product is the New Nithya Nidhi Deposit Scheme. The bank's page for it also names a Cauvery Akshaya Nidhi Deposit Scheme alongside it, without saying more about how the two relate.

How the rate works

The scheme runs for 60 months from a minimum of ₹50, and the interest depends entirely on how long the account stays open:

• Closed before 12 months: no interest at all.
• 12 months to under 18: 1.00%.
• 18 months to under 36: 2.00%.
• 36 months to under 59: 3.00%.
• The full 60 months: 4.00%.

That ladder is the most important thing to understand about this account. It is not a 4.00% product that charges a penalty for leaving early; it is a product whose rate is earned by staying, and only the last step pays the headline figure. Someone who may need the money within a year should know that a year's daily payments would come back with nothing added. The page does not say how interest is calculated or credited, so ask the branch whether the rate applies to the whole balance or to each day's deposit for the time it was held. Our maturity calculator shows how much that choice matters.

Closing early

Beyond the lower slab rate, early closure carries a service charge of ₹5 plus GST. The page also sets out when the agent's commission is clawed back: closed within 12 months, the commission paid on the whole balance is recovered from the agent; after that, only commission on unusually large credits is. That rule protects the bank and shapes how an agent will talk to you about closing, but it is the agent, not you, who repays the commission. Our comparison of early-closure terms sets this against what other institutions publish.

Who collects, and what they are paid

The page does not state that collection is at your door, which is why our record marks the product as a probable rather than confirmed daily-collection scheme. It does state the agent's pay: 3% of the monthly collection plus ₹100 a month in conveyance, with tax deducted at source. A bank that publishes its agent's commission is telling you what the collection costs it, which helps explain why the rate is laddered the way it is.

Checking your balance

The bank states that a balance confirmation is to be obtained every half year, at the end of September and of March. Treat those dates as yours too: compare the confirmation with your passbook and your collection receipts each time. Our passbook checklist shows what to look for.

Deposit insurance

Karnataka Grameena Bank appears on DICGC's list of insured banks, so deposits are covered up to the insured limit per depositor. Our guide to whether your deposit is protected explains what that limit covers. The figures above were read from the bank's page; the record below shows each one with its source and the date it was read.