To cope with such situations, Bank of Maharashtra (BoM) is launching a deposit linked scheme called `mixie deposit' to cover emergency medical and hospitalisation expenses. Initially the scheme would be launched in other centres. According to Kishore Vaze, Deputy General Manager, Pune city region, such a scheme was being implemented in the State for the first time.

Instead of breaking deposits before its maturity to meet emergency medical expenses, depositors would be able to take 100 per cent loans against the mixie deposit and reimburse it in six months time. Customers would have to deposit a minimum amount of Rs 25,000 and in multiples of Rs 5000 thereof for a minimum period of three years.

There is no maximum limit on deposit and these could be kept for a period up to six years. The bank would issue a pass-book and cheque book against this deposit. This cheques could be issued at hospitals by customers which would be honoured by the bank to the extent of the size of the deposit. On the loan, the bank would charge two per cent extra over the amount of interest paid for the deposit. The deposit would continue to earn interest for the customer.

For the bank it would be an additional scheme for attracting new deposits and also providing value addition to existing deposit holders, Vaze said. The scheme will be officially launched on September 23 at the bank's Erandawane branch in Pune.

BoM has tied up with the Maharashtra Medical Foundation which runs two hospitals - Ratna Memorial Hospital and Joshi Hospital with 135 beds in the city. The foundation also has tie-up with other major hospitals in the city for using facilities not available at their hospitals. BoM would tie up with more hospitals to expand this facility. The bank is also tying up with automobile dealers to expand its car loan business.