If you also make fixed deposits be aware that the RBI has significantly altered the FD requirements. The RBI’s updated FD regulations have also taken effect. On the one hand, many government and non-government banks have raised their interest rates on fixed-term deposits after the RBI boosted its repo rate. Therefore, read this news before getting FD done if you plan to or have already gotten it done. If not, you could have to take the loss.
Changes to the FD’s maturity rule
Since the RBI modified the FD rules, you will now receive less interest if you do not withdraw the money once the FD matures.
You will receive interest that is equal to the interest earned on your savings account.
Currently, banks typically provide FDs with extended terms of 5 to 10 years with interest rates of more than 5%.
The interest rates on savings accounts range from 3% to 4% concurrently.
RBI ordered
In accordance with RBI. Deposits in all commercial banks, small financing banks, cooperative banks, and local regional banks will be subject to the new law. The interest rate applicable to the savings account or the interest rate prescribed for matured FDs, whichever is less, will be given if the fixed deposit matures and the sum is not paid or claimed.
Know what the regulations are?
Consider the following scenario: You have a five-year fixed-rate deposit (FD) that matured today, but you are choosing not to remove the money. In this case, there are two possibilities.
- You will continue to get FD interest only if the interest on your FD is lower than the rate on your savings accounts with that bank.
- You will get the interest from the savings account at maturity if the interest on the FD is higher than the interest on the savings account.
What were the earlier regulations?
Now, if we talk about the previous norm, the bank used to prolong your FD for the same term for which you had previously FD when your FD matured and you did not withdraw its money or do not claim it. It was But this is no longer true. It is preferable to remove money as soon as possible after maturity since if you wait until the money matures, you will not receive FD income on it. This new regulation is now in force.
News Mania Desk
