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 investors: Big relife…! RBI issued a new guideline regarding premature FD withdrawal, check immediately first appeared on Rightsofemployees.com.

In such a situation, now on mature withdrawal of FD in the bank, more charges will have to be paid than before. According to the information available on the bank’s website, now a penalty of 0.75 percent will be imposed on premature withdrawal of FDs with maturity of 181 days and less. Earlier it was 0.50 percent. 

At the same time, a penalty of one percent will be imposed on premature withdrawal of FD with maturity of 182 days and above. Earlier it was 0.75 percent. At the same time, no penalty of any kind will be charged on premature withdrawal of FD made by senior citizens after May 16, 2022. 

Interest rates on FD in Yes Bank

• 7 days to 14 days – 3.25 percent 
• 15 days to 45 days – 3.70 percent 
• 46 days to 90 days – 4.10 percent 
• 91 days to 120 days – 4.75 percent
• 121 days to 180 days – 5.00 percent 
• From 181 days to 271 days – 6.10 percent
• From 271 days to less than a year -6.35 percent 
• One year -7.25 percent 
• One year one day to less than 18 months – 7.50 percent 
•  From 18 months to less than 24 months – 7.75 percent 
• From 24 months to 60 months -7.25 percent 
• From 60 months one day to 120 months -7.00 percent 

The bank is giving additional interest ranging from 0.50 percent to 0.75 percent to senior citizens. 

The post Yes Bank shocks customers, increases penalty on premature FD withdrawal first appeared on Rightsofemployees.com.