The Reserve Bank of India (RBI) has changed the rules for Fixed Deposits as it said that if a customer has not claimed FD even after maturity, then he/she will have to bear the loss in terms of interest in savings.
The Reserve Bank of India (RBI) has changed the rules for Fixed Deposits as it said that if a customer has not claimed FD even after maturity, then he/she will have to bear the loss in terms of interest in savings. The bank further stated that customers can still earn interest after Term Deposit (TD) matures and proceeds are unpaid.
“It has been decided that if a Term Deposit (TD) matures and proceeds are unpaid, the amount left unclaimed with the bank shall attract rate of interest as applicable to savings account or the contracted rate of interest on the matured TD, whichever is lower,” the RBI stated in statement.
The Reserve Bank of India has made changes in the rules related to FDs. After this change, if your FD is not claimed even after maturity and the money is lying with the bank, then you may have to bear the loss of interest on the savings.
In fact, RBI has said in one of its circulars that if an FD matures and its payment is not made or it remains lying with the bank without claim, then the interest rate on it according to the savings account or on the matured FD. The lesser of the contracted interest will be available there.
The Reserve Bank comes with a guideline where it says that this decision will be applicable to all types of banks. These include Commercial Banks, Small Finance Banks, Urban Co-operative Banks, Local Area Banks, State Co-operative Banks and District Central Co-operative Banks.
In FD, an amount is invested for a predetermined time. It gives slightly better interest than normal savings. If the same investment is made for a period of 5 years or more, then the benefit of tax saving is also available.
Fixed Deposits (FDs) can be taken from any bank or can also be done in the post office. Investments on FDs can take advantage of loans, but this facility is not available on tax-saving FDs.