FD Update: Good news for FD investors, now there will be no penalty on premature withdrawal before this time..

Big relief to FD investors: Most people prefer to invest in FD due to its safety. If you are also one of such investors, then there is good news for you. RBI has issued a new guideline regarding fixed deposits, which you should know about. From January 1, 2025, there will be no penalty for premature withdrawal within 3 months of getting FD.

RBI has implemented new rules for Housing Finance Companies (HFC) and Non-Banking Finance Companies (NBFC) keeping in mind the interests of investors. This includes everything from making a nominee to FD premature withdrawal rules. Let's know about the new rules of RBI.

RBI's new rule related to FD

According to the new rule of the Reserve Bank of India (RBI), you will have the freedom to withdraw money within 3 months of getting FD. You can withdraw the entire amount of small deposits (up to Rs 10,000) within 3 months without any interest. For large deposits, partial withdrawal of up to 50% of the principal amount or Rs 5 lakh (whichever is less) can be done within three months without interest.

Not only this but in cases of critical illness, the depositor is allowed to withdraw the entire principal amount prematurely without interest, regardless of the deposit term. Also, for more timely updates, now non-banking financial companies (NBFCs) will be required to inform the depositors about the maturity details at least two weeks before the maturity date.

Other changes to be implemented from January 1, 2025

Nominee update: Non-banking financial companies (NBFCs) have been directed to create a proper system to provide information about the receipt of properly filled nomination forms, cancellation or change of nominee. All customers will be required to give this acknowledgment, whether they have requested it or not.

Withdrawal rules: As per RBI's directive, individual depositors holding public deposits will be allowed to request a premature withdrawal within three months from the date of deposit. Within three months, the depositor can withdraw a maximum of 50% of the original amount or Rs 5 lakh (whichever is less) without any interest. In this way, he will continue to get interest on the remaining amount.

In case of critical illness: In case of critical illness, depositors can request to withdraw their entire original deposit amount within three months from the date of deposit. Note that this rule also applies to existing deposit contracts that previously did not allow the right to premature withdrawal within the first three months.

Deposit maturity information: Earlier, NBFCs were required to inform depositors about the maturity date of their deposits at least two months in advance. But now for more timely updates, NBFCs will have to inform the depositors about the maturity date at least 14 days before the maturity date.

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