Reserve Bank issues new rules on fixed deposits

Fixed deposits can be withdrawn within 3 months without any interest

New Delhi – The Reserve Bank of India has changed the fixed deposit (FD) rules from January 1^st. The new rules include consent and repayment of public deposits, nomination, emergency expenses and informing depositors about the deposit, among other things.

1. According to the new rules of the Reserve Bank, depositors can withdraw small deposits (up to Rs 10,000) without any interest within 3 months. At the same time, for large deposits, up to 50% of the principal amount or up to Rs 5 lakh (whichever is lower) can be withdrawn without interest within 3 months. In case of serious illness, depositors can request to be allowed to ask for the principal deposit 3 months before the date of the fixed deposit, which is issued without any interest.

2. Earlier, pre-maturity rights were not allowed in the initial 3 months. Depositors were required to be informed about the maturity date of their fixed deposits at least 2 months in advance, but now this period has been reduced to 14 days.