RBI Changes Rules Regarding Fixed Deposits

The rules related to FD have been changed by the Reserve Bank of India (RBI). The new rules have also been implemented by RBI. In the last few days, both government and non-government banks have increased the interest rate on FDs.

RBI has made this change in the rules of Fixed Deposit (FD) that if one does not claim their amount after maturity, then he will get less interest on it. This interest will not be FD but will be equal to the interest received on the savings account. At present, more than 5 per cent interest is given by banks on FDs of 5 to 10 years. At the same time, the interest rates on the savings account range from 3 to 4 per cent.

According to the information given by the RBI in the last days, if the FD matures and the amount is not paid or claimed, then the interest rate on it is determined on the basis of savings accounts or on the matured FD. The interest rate, whichever is lower, will be available. These rules will be applicable to deposits in all commercial banks, small finance banks, co-operative banks, local regional banks.

As per the old rule earlier, on maturity of a FD, if one did not withdraw or claim it, then the bank would extend the FD for the same period for which one had made a fixed deposit earlier. But now if the money is not withdrawn on maturity, then FD interest will not be available on it.