RBI has increased the minimum amount for offering non-callable TDS from Rs 15 lakh to Rs 1 crore.
Banking & Finance
The Reserve Bank of India (RBI) has increased the minimum amount for offering non-callable fixed deposits (TD) by 6.66 times to ₹1 crore to ensure that retail depositors are not lured by the extra interest rates offered on these deposits They are penalized if they need to break even in an emergency. Moreover, industry experts say, the central bank may have assessed that banks may have reached a level where less than the ₹1 crore limit has been The first withdrawal will not affect them much. Non-callable TDs cannot be withdrawn before the maturity date. The central bank recently reviewed its "Master Direction on Interest Rates on Deposits" with respect to non-callable TDs, under which it directed banks Raised the minimum amount for offering non-callable TD from ₹15 lakh to ₹1 crore.
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