New Delhi. There is big news for those who have fixed deposit (FD) in banks. The Reserve Bank of India has made a big change in the rules of fixed deposits, saying that if the amount is not claimed even after the date of FD maturity, then the interest on it will be given less.
Reserve Bank issued a new circular
RBI has issued a circular saying that if the FD matures and due to any reason the amount of FD is not paid or claimed, then the interest rate on it according to the savings account or fixed deposit. Contracted rate of interest, whichever is lower, will be given on maturity. The new order of the Reserve Bank will be applicable to all commercial banks, small finance banks, cooperative banks, local regional banks present in the country.
What is Fixed Deposit
In fact, Fixed Deposit is an amount that is deposited in banks at a fixed interest for a fixed period. On maturity of the FD, the principal plus the enhanced amount is given to the client by adding the interest amount. Till now FDs were seen as emergency savings in many Indian households. But after the issue of the new rule of Reserve Bank of India, if the amount is not claimed, then the rate of interest and amount will be changed and it will be payable at the rate of interest ‘payable on savings deposit’. In such a situation, if you do not pay attention to the date of FD maturity and do not claim at the right time, then you may have to suffer financial loss.