RBI FD Rules 2022, New FD Rule, Bank, Post Office FD Interest Rate Rule Change: A Fixed Deposit (FD) is popular among traditional investors, thanks to the tags like ‘safe’ and ‘guaranteed return’ such investments enjoy. In recent months, fixed deposit interest rates have been modified by both government and private banks and financial institutions. This has made FDs once again one of the most sought investment destinations. But do you know that the Reserve Bank of India (RBI) has just made an important change regarding the interest rate that FDs earn? Let’s see what change the central bank has introduced.
RBI FD Rules 2022
The new FD rule is related to interest being paid on unclaimed or overdue FDs. As per the new rule, if a term deposit matures and proceeds are unpaid, the unclaimed amount will now earn a lesser interest rate. It means that if a person decides not to claim or withdraw the amount at the maturity of the fixed deposit, then the amount after maturity will attract less interest.
Earlier, if the FD amount was left unclaimed even after maturity, then the amount attracted an interest rate as applicable to savings deposits. But now, such unclaimed deposits will not get high interest.
The rule says that such unclaimed FDs will attract the contracted rate of interest or the rate of interest applicable to a savings account, whichever is lower.
The new rule is applicable to deposits in all commercial banks, small finance banks, cooperative banks and local regional banks.
What is an overdue FD?
A fixed deposit is tagged as ‘overdue’ when the investor upon maturity does not claim the amount or renew it, and the amount remains idle with the bank or the institution.