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This article is more than 5 month old.

RBI tweaks norms for interest on unclaimed amount after fixed deposit matures; details here

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The Reserve Bank of India (RBI) on Friday tweaked the norms for interest on the amount left unclaimed with the bank after a fixed deposit (FD) matures.

RBI tweaks norms for interest on unclaimed amount after fixed deposit matures; details here
The Reserve Bank of India (RBI) on Friday tweaked the norms for interest on the amount left unclaimed with the bank after a fixed deposit (FD) matures.
Currently, unclaimed deposits attracted the rate of interest applicable to savings deposits in case a fixed deposit matured and the proceeds were left unpaid.
'It has been decided that if a Term Deposit (TD) matures and proceeds are unpaid, the amount left unclaimed with the bank shall attract a rate of interest as applicable to savings account or the contracted rate of interest on the matured TD, whichever is lower,' says RBI in a circular.
It must be noted that a fixed deposit is also known as a term deposit.
The new rules will be applicable for deposits on all commercial banks, small finance banks, local area banks and cooperative banks.
Term deposit refers to an interest-bearing deposit received by the bank for a fixed period. It also includes deposits such as recurring, cumulative, annuity, reinvestment deposits and cash certificates.
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