According to the Reserve Bank circular, after review, it has been decided that the minimum amount for non-withdrawable fixed deposits can be increased from Rs 15 lakh to Rs 1 crore.
FD rule change: Reserve Bank of India (RBI) has said that banks will have to provide premature withdrawal facility on all fixed deposits up to Rs 1 crore. At present this limit is up to Rs 15 lakh. The Reserve Bank said in a circular – After review, it has been decided that the minimum amount for non-withdrawable fixed deposits can be increased from Rs 15 lakh to Rs 1 crore. This means that there should be facility for premature withdrawal on fixed deposits of Rs 1 crore and less by individuals.
Along with this, banks have also been given the option to offer different interest rates depending on the tenure and size of the fixed deposit as per the existing norms and there is no premature withdrawal option. These instructions have come into effect with immediate effect on all commercial banks and cooperative banks. The bulk deposit limit for regional rural banks (RRBs) has been increased to Rs 1 crore and above from the existing Rs 15 lakh, RBI said in another circular.
Strictness on credit information companies also: Along with this, RBI said that credit information companies (CIC) will have to pay a compensation of Rs 100 per day for the delay in improving the credit information of customers. Credit institutions (CIs) and credit information companies (CICs) have been given six months to implement the new system.
