FD New Withdrawal Rule: Big relief for FD holders! No penalty will have to be paid on premature withdrawal within this time

FD New Withdrawal Rule: According to RBI guidelines, now depositors can withdraw the entire amount of small deposits (up to Rs 10,000) without any interest within 3 months of depositing it.

FD New Withdrawal Rule: There is good news for investors who have made FDs. From January 1, there will be no penalty for premature withdrawal within 3 months of making an FD. Actually, a new rule has been implemented by the Reserve Bank of India for Housing Finance Companies (HFC) and Non-Banking Finance Companies (NBFC). Under this, many rules have been changed to protect the interests of investors. This includes rules from making a nominee to premature withdrawal of FD. Let us know how you will benefit from the new RBI rule.

Know what does the new RBI rule say?

According to the Reserve Bank of India (RBI), common people will have the freedom to withdraw money within 3 months of making an FD. As per the directive, depositors can withdraw the entire amount of small deposits (up to Rs 10,000) within 3 months of deposit without any interest. For large deposits, partial withdrawals of up to 50% of the principal amount or Rs 5 lakh (whichever is lower) can be made within three months without interest. In cases of critical illness, depositors are allowed to prematurely withdraw the entire principal amount without interest, regardless of the deposit period. In addition, non-bank financial companies (NBFCs) will be required to inform depositors at least two weeks before maturity.

These changes also came into effect from January 01

• Nominee update: NBFCs have been directed to create a system to acknowledge receipt of filled nominee forms, cancellation or change of nominee. It will be mandatory to give this acknowledgement to all customers, whether requested or not.
• Mention of nominee in passbook: NBFCs should consider entering details of the nominee on passbooks or receipts. This should include the words “Nominee Registered” and the name of the nominee on the entry with the consent of the customer.
• Withdrawal: As per RBI directive, individual depositors holding public deposits are allowed to request premature withdrawal within three months from the date of deposit. In such cases, a maximum of 50% of the principal amount or Rs 5 lakh (whichever is lower) can be withdrawn without any interest. The balance amount will continue to earn interest.

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