New Delhi: The Reserve Bank of India (RBI) has changed the rules for Fixed Deposits/ Term Deposits. As per the new rule, the customer will have to bear the loss in terms of interest in savings if he/she has not claimed FD even after maturity. RBI 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 a rate of interest as applicable to a savings account or the contracted rate of interest on the matured TD, whichever is lower,” the RBI stated in a statement.
As per the circular, If an FD matures and is unclaimed or its payment is not made, the interest rate is based on the savings account or the matured FD. The lesser of the contracted interest will be available there.
RBI in its circular said that the new rule will apply to all types of banks commercial banks, small finance banks, cooperative banks, local regional banks.
A fixed deposit is a deposit that is kept in banks for a fixed period of time at a fixed interest. It also includes deposits such as recurring, cumulative, reinvested deposits, and cash certificates. FDs can be done in the post office as well. FD investments can be taken advantage of in loans, however, the facility is not available on tax-saving FDs.
