The Reserve Bank of India (RBI) has recently announced a change in the rules related to Fixed Deposit (FD), Savings Account, and Recurring Deposit (RD), which will be applicable from 1 January 2025. However, the date of April 1 is given in your question, but according to the current information, the new RBI rules will be effective from 1 January 2025. These rules include provisions related to nomination and premature withdrawal.
The main objective of these changes is to increase facilities for depositors and ensure their safety. The rules of nomination have been improved, so that deposits will be able to select a nominee for their deposits. In addition, the rules of premature withdrawal have also been changed, allowing depositors to withdraw a part of their deposits in emergency situations.
RBI’s new rules: a detailed description
Observation of rules
| Speciality | Description |
| Nomination rules | The depositor will be given the facility to select the nominee. The NBFC will have to acknowledge nomination form. |
| Premature withdrawal | Within three months from the date of deposit, 50% or 5 lakh rupees (whichever less) can be withdrawn without interest. |
| In case of serious illness | The entire amount can be withdrawn without interest within three months from the date of deposit. |
| Maturity notification | The depositors will be informed at least 14 days before the maturity of the deposit. |
| Nominee details in passbook | Provision to enter the name of the nominee in the passbook. |
| Withdrawal for emergency expenditure | Depositors can withdraw a portion of the deposit for emergency expenditure. |
Changes in nomination rules
According to the new RBI rules, NBFC will have to acknow nomination form for nomination. This acknowledgment will be given to all depositors, whether they have requested it or not. Apart from this, a provision has also been made to enter the name of the nominee on passbooks or receipts, in which the name of “nomination registered” and nominee will be written.
Premature withdrawal rules
In the case of premature withdrawal, the depositors can withdraw a maximum of 50% of their deposit or 5 lakh rupees (whichever) without any interest within three months from the date of deposit. Interest will continue to be available on the remaining amount on the remaining amount. In the case of serious illness, the depositors can withdraw the entire deposit without interest within three months from the date of deposit.
Maturity notification
Now the depositors will be informed at least 14 days before the maturity of the deposit. Earlier this period was two months, which has now been reduced to 14 days. This change will help depositors to get timely information about their deposits.
Withdrawal for emergency expenditure
Under the new RBI rules, depositors can withdraw a part of their deposit for emergency expenses. This provision will help depositors in the event of financial crisis.
Benefits of nomination
Changes in the rules of nomination will make it easier for depositors to select a nominee for their deposits. With this, after the death of the depositor, their deposit amount can be settled easily.
Benefits of premature withdrawal
Changes in premature withdrawal rules will allow depositors to withdraw a part of their deposits in emergency situations. This will help depositors in a state of financial crisis.
Benefits of maturity notification
Changes in the rules of maturity notification will give timely information about the maturity of their deposits. With this, deposits will be able to renew their deposits on time or select other investment options.
Emergency benefits for emergency expenditure
The provision of withdrawal for emergency expenses will help depositors in the financial crisis. With this, the depositors will be able to meet their emergency needs.
conclusion
The new RBI rules will provide many facilities to the depositors. Changes in nomination, premature withdrawal, and maturity notification rules will increase the safety and convenience of depositors. With the implementation of these rules, depositors will be able to make their investment more secure and flexible.
Special things
- Nomination: The depositors can choose a nominee for their deposits.
- Premature withdrawal: A part of the amount deposited in emergency situations can be withdrawn.
- Maturity notification: depositors will be informed before the maturity of deposits.
- Emergency expenditure: deposits can withdraw a part of the deposit for emergency expenditure.
Other important information
Apart from these rules, RBI has also issued new guidelines for housing finance companies (HFCs) and non-banking finance companies (NBFC). These guidelines include provisions related to management and withdrawal of public deposits.
Conclusion and future direction
The new RBI rules will improve Indian banking and financial sector. The depositors will get greater security and flexibility, allowing them to manage their investment in a more secure and convenient manner.
Note
According to the information currently available, the new RBI rules will be effective from 1 January 2025, not from 1 April.
Disclaimer:
The information given in this article is based on the current available data. It would be appropriate to see the official RBI notification for the date and details of change in RBI rules.
