Big news has popped in concerning Fixed Deposit investors. The Reserve Bank of India has now altered certain rules with regard to FDs for non-banking financial firms and housing finance companies. The new rules are set to take effect from January 2025.
The guidelines involve small deposits, withdrawal, passbook, and maturity, which all becoming compulsory for these companies to follow. The primary aim for this change is to create extensive security to bear to the customers that he will be facing no inconvenience at the time of withdrawal whenever he needs cash.
Withdrawal before Maturity-Early
The much-talked-about new rules have given freedom to clients in making withdrawals of little deposits. From now onwards fixed deposits which are less than Rs.10,000 can also allow early withdrawals, however, interest will not be applied to it.
Similarly, amounts above Rs. 10,000 shall be permitted to be withdrawn after a reprieve period of 10 months. In addition, for further deposits up to Rs. 5 lakh, customers can request withdrawal of the maximum of 50 percent principal amount and for three months on interest-free investment. Other conditions permit sick clients to draw the principal amount of FD before the time ends. These are those rules that have been promulgated bearing in mind the interest of the customers.
FD Nomination Changes
The RBI has also modified FD Nomination processes. Now, NBFCs must give acknowledgement to customers submitting nomination forms and changes/cancellation thereof. Passbook and receipt will also have to have “Nomination Registered” inscribed on them. Companies must also notify their customers about FD maturity 14 days in advance. Previously, it was a two-month notice period.
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