Bank Fixed Deposit Rules: If you have invested your money in fixed deposits, then there is a good news for you. RBI has changed the rules regarding FDs. As the Reserve Bank of India (RBI) has increased the amount in FDs, you can now withdraw your deposits up to Rs 1 crore early. RBI raised the minimum amount from Rs 15 lakh to Rs 1 crore.
The Reserve Bank of India (RBI) has changed the rules regarding premature withdrawal from bank FDs. Currently banks provide premature withdrawal facility on FDs up to Rs.15 lakhs. Now the central bank immediately increased this amount to Tk 1 crore. Until now banks had the option of premature withdrawals in TD or FD. 15 lakhs was also allowed to be withdrawn. This circular is applicable to all commercial and co-operative banks. Banks offer two types of FDs, callable and non-callable. Non-callable FD means you cannot withdraw the money prematurely i.e. before maturity. Callable can be extracted.
Fixed Deposit is a savings scheme where account holders can withdraw their money at any time. The account holder can withdraw some or the entire amount prematurely before maturity. This type of FD is called a callable FD where you can withdraw the money ahead of time. However, banks charge a penalty for withdrawing money before maturity. However, callable FDs have no lock-in period.
Investors in non-callable FDs cannot withdraw before maturity. However, there are rules that allow you to withdraw money early. You can withdraw money prematurely in case of bankruptcy, closure of business and death of the account holder. Non-callable FDs earn higher interest than normal FDs because money is locked in it.