RBI has changed the fixed deposit rule..!?
RBI has changed the fixed deposit rule..!?
Reserve bank of India has said that all domestic term deposits accepted from individuals for an amount of Rs 1 crore or less will have an early withdrawal facility. Banks offer two types of deposits, callable and non-callable. In callable fixed deposits the customer can withdraw the money before the expiry of the maturity period.
Reserve bank of India has said that all domestic term deposits accepted from individuals for an amount of Rs 1 crore or less will have an early withdrawal facility. Banks offer two types of deposits, callable and non-callable. In callable fixed deposits the customer can withdraw the money before the expiry of the maturity period.
However non-callable fixed deposits cannot be withdrawn before maturity. In this context, the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india has changed the rules for early withdrawal of domestic term deposits or bank fixed deposits. Banks currently offer a pre-maturity withdrawal facility for fixed deposits up to Rs 15 lakh. Now this amount has been increased to Rs.1 crore.
In a statement issued by the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india in this regard, the review has decided that the minimum amount for issuing non-callable fixed deposits may be raised from Rs 15 lakh to Rs 1 crore. For example, all domestic term deposits accepted from individuals for an amount of Rs 1 crore or less will have an early withdrawal facility. Also, banks may offer different interest rates on non-callable fixed deposits with no early withdrawal facility depending on the maturity period and the amount deposited.
These regulations are N.R.E. and N.R.O. Applies to deposits as well. This circular applies to all commercial banks and co-operative banks. And it said that it will come into effect immediately. With this move by the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india, depositors will now be able to withdraw fixed deposits of up to Rs 1 crore in banks before the end of the maturity period. Banks are currently offering attractive interest rates on Fixed Deposits. icici bank fixed deposit offers interest up to 7.60 percent depending on tenure and amount. punjab National bank up to 7.75 percent and sbi Up to 7.50 percent, hdfc Banks offer interest up to 7.75 percent (per annum) on Fixed Deposits.