FD
There is good news for investors making FD. From today i.e. from January 1, there will be no penalty on premature withdrawal within 3 months of making FD. Actually, a new rule has been implemented by the Reserve Bank of India for Housing Finance Companies (HFC) and Non-Banking Finance Companies (NBFC). Under this, many rules have been changed to protect the interests of investors. This includes rules from making nominee to premature withdrawal of FD. Let us know how you will benefit from the new rules of RBI.
Know what the new rule of RBI says?
According to the Reserve Bank of India (RBI), common people will have the freedom to withdraw money within 3 months of making FD. As per the instructions, depositors can withdraw the entire amount of small deposits (up to Rs 10,000) within 3 months of deposit without any interest. For larger deposits, partial withdrawal up to 50% of the principal amount or Rs 5 lakh (whichever is lower) can be done without interest within three months. In cases of critical illness, depositors are permitted to withdraw the entire principal amount prematurely without interest, regardless of the deposit period. Additionally, non-bank financial companies (NBFCs) will be required to inform depositors at least two weeks before the completion of maturity.
These changes also came into effect from today
Nominee Update: NBFCs have been directed to put in place a system to acknowledge receipt of filled in nomination form and inform the nominee about cancellation or change in the same. All customers will be required to provide this acknowledgment whether requested or not.
Mention of nominee in passbook: NBFCs should consider recording nominee details on passbooks or receipts. This should include writing “Nominee Registered” and the name of the nominee on the entry with the consent of the customer.
Withdrawal: As per RBI directive, individual depositors holding public deposits are allowed to request premature withdrawal within three months from the date of deposit. In such cases, a maximum of 50% of the principal amount or Rs 5 lakh (whichever is less) can be withdrawn without any interest. Interest will continue to be received on the remaining amount.
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