Most people prefer to invest in FD because it is safe. If you are also among such investors then there is good news for you. RBI has issued a new guideline regarding fixed deposits, which you should know about. From January 1, 2025, there will be no penalty on premature withdrawal within 3 months of making FD.

RBI has implemented new rules for Housing Finance Companies (HFC) and Non-Banking Finance Companies (NBFC) keeping in mind the interests of investors. This includes everything from making a nominee to FD premature withdrawal rules. Let’s know about the new rules of RBI.

RBI’s new rule related to FD

According to the new rule of Reserve Bank of India (RBI), you will have the freedom to withdraw money within 3 months of making an FD. You can withdraw the entire amount of small deposits (up to Rs 10,000) within 3 months without any interest. Whereas for large deposits, partial withdrawal of up to 50% of the principal amount or Rs 5 lakh (whichever is less) can be done within three months without interest.

Not only this, in cases of critical illness, the depositor is allowed to withdraw the entire principal amount prematurely without interest, regardless of the deposit term. Also, for more timely updates, now non-bank financial companies (NBFCs) will be required to inform the depositors about the maturity details at least two weeks before the maturity date.

Other changes to be implemented from January 1, 2025

Nominee update: Non-banking financial companies (NBFCs) have been directed to create a proper system to inform about the receipt of the correctly filled nomination form, cancellation or change of nominee. It will be necessary to give this acknowledgement to all customers, whether they have requested it or not.

Withdrawal rules: As per RBI’s directive, individual depositors holding public deposits will be allowed to request premature withdrawal within three months from the date of deposit. Within three months, the depositor can withdraw a maximum of 50% of the principal amount or Rs 5 lakh (whichever is less) without any interest. In this way, he will continue to get interest on the remaining amount.

In case of critical illness: In case of critical illness, depositors have a right to request withdrawal of their entire original deposit amount within three months from the date of deposit. Note that this rule also applies to existing deposit contracts that previously did not allow the right of premature withdrawal within the first three months.

Deposit maturity information: Earlier, NBFCs were required to inform depositors about the maturity date of their deposits at least two months in advance. But now for more timely updates, NBFCs will have to inform the depositors about the maturity date at least 14 days before the maturity date.

The post FD New Rule: Big relief to FD investors…Now there will be no penalty on premature withdrawal before this time first appeared on Rightsofemployees.com.

FD Premature Withdrawal Rule: With the changing times, many investment options have come nowadays, but even today, a large number of people in the country prefer to invest in the fixed deposit scheme of the bank. While investing in an FD scheme, you have to choose a period in which you invest your money in the bank.

For this period your money gets locked in the bank, but sometimes people suddenly need money. In such a situation, people take FD Premature Withdrawal Rules even before the completion of their FD period. In such a situation, such FD withdrawal is called Premature FD Withdrawal Rule.

You can withdraw money from FD before maturity, if a person keeps his money invested for the entire period of his FD, then he gets full money in return on maturity. If you break the FD on prematurity itself, then in such a situation penalty has to be paid. This penalty depends on the banks on your amount. Generally, most banks charge 0.5 to 1 percent interest rate from their customers on premature FD withdrawal from their customers. This penalty is levied on the interest money.

Know about the penalty of State Bank and HDFC Bank-

Let us tell you that the country’s largest public sector bank i.e. State Bank of India FD charges penalty from its customers on premature withdrawal of FD. If you do premature withdrawal on deposits of less than Rs 5 lakh, then you will have to pay 0.50 percent interest as a penalty. On the other hand, if you make premature withdrawal on deposits of more than Rs 5 lakh, you will have to pay an interest rate of up to 1 percent as a penalty. On the other hand, if you withdraw money before 7 days, you will not get any interest benefit on the deposit.

At the same time, HDFC Bank, the country’s largest private sector bank, also levies penalty interest rate of 1 percent on its customers on premature FD withdrawal. On the other hand, if you withdraw money within 7 to 14 days, then you will not have to pay any kind of penalty. Withdrawal of less than 1 year on ICICI Bank FD of less than 5 crores, you have to pay a penalty of 0.50 percent. At the same time, you will have to pay a penalty of 1 percent on withdrawal after a longer period of more than one year.

The post FD Withdrawal Rules: To Withdraw From FD Account Before Maturity? Know how much penalty will have to be paid first appeared on Rightsofemployees.com.