The Reserve Bank of India (RBI) has changed the rules for Fixed Deposits/ Term Deposits. As per the new rule, the customer will have to bear the loss in terms of interest in savings if he/she has not claimed FD even after maturity. RBI stated that customers can still earn interest after Term Deposit (TD) matures and proceeds are unpaid.
“It has been decided that if a Term Deposit (TD) matures and proceeds are unpaid, the amount left unclaimed with the bank shall attract a rate of interest as applicable to a savings account or the contracted rate of interest on the matured TD, whichever is lower,” the RBI stated in a statement.
As per the circular, If an FD matures and is unclaimed or its payment is not made, then the interest rate on it according to the savings account or on the matured FD. The lesser of the contracted interest will be available there.
