FD was New Order: FD consumers should rejoice as new regulations will now be in effect for deposited funds

 FD was New Order: FD consumers should rejoice as new regulations will now be in effect for deposited funds

The Reserve Bank circular states that after evaluation, it was determined to raise the minimum amount for non-withdrawable fixed deposits between Rs 15 lakh to Rs 1 crore.

Reserve Bank of India (RBI) has announced a revision to the fixed deposit (FD) rules, requiring banks to provide an early withdrawal opportunity on all accounts up to Rs 1 crore. This cap is currently set at Rs 15 lakh. In a circular, the Reserve Bank stated that the minimum amount under non-withdrawable fixed deposits might be raised from Rs. 15 lakh to Rs. 1 crore after review. This indicates that people should be able to take early withdrawals on fixed deposits of up to Rs 1 crore.

In addition, banks now have the choice to provide varying interest rates based on the amount and term of the fixed deposit in accordance with current guidelines; there is also no option for early withdrawal. All commercial banks and cooperative banks must immediately comply with these guidelines. According to another circular from the RBI, the bulk deposit ceiling for regional rural banks (RRBs) has been raised from the current Rs 15 lakh to Rs 1 crore and beyond.

Strictness on credit information firms also: In addition, the RBI announced that credit information companies (CIC) would be have to reimburse the delay in enhancing clients' credit information by Rs 100 per day. Six months have been allocated to credit information companies (CICs) as well as credit institutions (CIs) for the purpose of implementing the new system.