Know about RBI’s new rule on Fixed Deposits

Have you got a fixed deposit with any government or private bank? If yes, then maybe you are aware of this change, if not then read on to know all about it. The Central Reserve Bank of India had changed its rules regarding fixed deposits and term deposits some time ago (FD new rules). Under these changes, depositors will now may have to bear the loss of interest on their deposits after maturity. That is, now if the deposit money is not withdrawn after maturity, then the interest earned on it may decrease.

Less interest to be paid if maturity amount unpaid

RBI had issued a circular in July, which said that if customers do not claim their money after maturity, then they will have to suffer a loss on the interest money. However, it also mentions that even if one’s term deposit matures, but the money is not withdrawn and the proceeds remain unpaid, they will still get interest.

RBI had said in its circular, ‘It has been decided that if a term deposit matures and further proceedings are unpaid, then the interest on this money left with the bank is equal to the savings account or the amount of interest in the contract,’ Whichever is less, that interest will continue to be received. If a fixed deposit is not claimed after maturity, it will earn returns equal to the interest stipulated in the savings account or contract on the matured FD, whichever is less.