RBI Update: Banking sector regulator Reserve Bank of India has given big relief to those who deposit their hard-earned money in banks. Now depositors making fixed deposits up to Rs 1 crore in banks will be able to withdraw the money before maturity, earlier this limit was Rs 15 lakh. This will be possible because RBI has increased the limit of term deposits consisting of non-callable deposits from Rs 15 lakh to Rs 1 crore. This order of RBI will also be applicable to NRE Deposit and NRO Deposit. This order of RBI has come into effect immediately.
RBI issued a notification on 26 October 2023 saying, banks will have the option to take term deposits of up to Rs 15 lakh or less with pre-mature withdrawal option. Is given. Also, banks have been given the option to accept deposits at different interest rates on non-callable deposits without pre-mature option. After reviewing it, RBI has decided that the limit of non-callable FD is increased from Rs 15 lakh to Rs 1 crore on which pre-mature withdrawal facility will be available. This decision will also be applicable to NRE and NRO deposits.
Let us tell you that there is no option of pre-mature withdrawal before the completion of the tenure of FD which comes under non-callable deposit. Once money is deposited in such FD, the FD cannot be broken before the completion of the tenure. Banks pay higher interest on non-callable FD than normal FD. For example, Bank of Baroda gives 0.25 percent more interest on non-callable FDs of less than Rs 2 crore.
Get more latest business news updates