The minimum required deposit was initially a quarter of a rupee per day. Interest rates paid on these deposits are lower than the rates on regular savings deposits on the grounds that collection costs are high and that there is no alternative use for such small sums anyway, other than their remaining idle.

Furthermore, from the point of view of the targeted population, there are two other aspects of the scheme which still make it attractive, despite the low deposit rates. One is that local deposits are used for local investments. The other is that credit and technical assistance facilities are made available to small-scale farmers, retail traders, transport operators and other progessionals.

Note:Syndicate Bank discontinued this scheme in the late '90s