The Reserve Bank of India (RBI) has introduced new rules for fixed deposits (FDs) with non-banking financial companies (NBFCs) and housing finance companies.
These changes are expected to come into effect in January 2025 and aim to improve security for customers, especially related to small deposits, withdrawals, passbooks, and maturity processes.
Easy Withdrawals for Small Deposits
Under the new rules, customers will find it easier to withdraw small deposits.
For FDs worth less than Rs 10,000, premature withdrawals will be allowed, but no interest will be provided on these amounts.
For FDs above Rs 10,000, customers can withdraw their money after a minimum of 10 months.
In cases where the FD amount is less than Rs 5 lakh, customers can request to withdraw up to 50% of the principal amount without earning interest for three months.
Additionally, if a customer faces a serious illness, they can withdraw the principal amount before the FD term ends.
Changes in Nomination and Maturity Notifications
The RBI has also updated the rules regarding FD nominations. Now, NBFCs must provide an acknowledgment for customers who submit, change, or cancel their nomination forms.
The words “Nomination Registered” must appear on the passbook and receipt.
Furthermore, NBFCs will have to notify customers about FD maturity 14 days in advance, instead of the earlier two-month notice period.
