RBI: The Reserve Bank of India (RBI) in a notification issued on October 26 has talked about changes in the rules of fixed deposits. These instructions also introduce new rules for Non-Resident (External) Rupee (NRE) Deposit / Ordinary Non-Resident (NRO) Deposit. (FD new rule) will be applicable.
If you have invested money in fixed deposit, then there is good news for you. The Reserve Bank of India (RBI) has increased the minimum amount for offering Non-Callable Term Deposit from Rs 15 lakh to Rs 1 crore. This means that you will now be able to make premature withdrawal (FD new rule) of all fixed deposits (FD) up to Rs 1 crore before maturity. Let us tell you here, the bank offers two types of FD. One callable and the other, non-callable. Premature withdrawal is permitted in callable deposits, whereas it is not permitted in non-callable deposits.
Know what is the new rule now
The Reserve Bank of India (RBI) in a notification issued on October 26 said that the minimum amount for offering non-callable FD can be increased from Rs 15 lakh to Rs 1 crore, i.e. Rs 1 crore. And all domestic fixed deposits accepted from customers for amounts less than that will have the facility of premature withdrawal.
According to the media report, these instructions will also apply to the new rules for Non-Resident (External) Rupee (NRE) deposits / Ordinary Non-Resident (NRO) deposits.
What was the provision in the earlier rule?
Banks will have the freedom to offer FD without the option of premature withdrawal. Provided that all fixed deposits accepted from customers (single or joint) for amounts of Rs 15 lakh and below shall have the facility of premature withdrawal. Now this rule has been amended. Premature withdrawal option will also be available for NRE/NRO account holders on FD (fixed deposit) deposits up to Rs 1 crore.
