Sweep-In For Liquidity

Then, there is the sweep-in facility provided by HDFC Bank, Kotak Mahindra Bank, IDBI Bank, Oriental Bank of Commerce, Andhra Bank, Standard Chartered Bank and few other banks. Through this facility, the customer's SB or Current Account is linked with his FDs and any deficit or shortfall in the SB or Current Account is filled by transfer of funds from the linked FD. Hence, the accountholder can avail of cash as when he needs it. For Andhra Bank accounholders, this is called the reverse sweep as money is automatically transferred from FD to meet the deficit in SB or Current Account. In the case of such sweep-in from FD to SB or Current Account, the bank may transfer an amount which is exactly equal to the deficit or may transfer the entire amount of FD, depending on specific rules. In the case mul­tiple FDs are linked to the account, then the bank will first transfer the amount from the last FD to meet the shortfall, and if this does not suffice, then it will transfer amount from the next latest FD, and so on.