The Reserve Bank of India has rolled out revised regulations for fixed deposits, applicable from January 1, 2025. These updates aim to enhance the depositor experience while ensuring regulatory compliance for housing finance companies (HFCs) and non-banking finance companies (NBFCs).
Key Provisions of the Revised Rules
- Small Deposits:
Deposit holders can withdraw the full amount of deposits up to Rs 10,000 within three months of depositing. However, these withdrawals will not accrue any interest. - Larger Deposits:
For deposits exceeding Rs 10,000, premature withdrawals of up to 50% of the principal amount or Rs 5 lakh, whichever is lower, are permitted within the first three months. Similar to small deposits, no interest will be earned on such withdrawals. - Critical Illness Provision:
In cases of critical illness, depositors can withdraw the entire principal amount prematurely, irrespective of the deposit term. This withdrawal is processed without accruing any interest and applies to existing and new deposit agreements.
Nomination and Notification Guidelines
- Nomination Updates:
NBFCs must acknowledge receipt of nomination forms, including cancellation or modification requests. The acknowledgment must be shared with depositors, whether requested or not. - Nominee Information in Passbooks:
With customer consent, nominee details will now be recorded in passbooks or deposit receipts under the label “Nomination Registered.”
Maturity Notifications Simplified
The notification period for deposit maturity has been reduced from two months to 14 days. NBFCs are now required to provide this timely update, enabling depositors to plan withdrawals or reinvestments more effectively.
These revised rules reflect RBI’s commitment to balancing depositor convenience and regulatory integrity. The changes simplify withdrawal processes, introduce flexibility for emergencies, and improve transparency, making fixed deposits a more user-friendly savings option.
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