New Fixed Deposit Rules 2025: The Reserve Bank of India’s revised regulatory framework for housing finance companies (HFCs) and non-banking finance companies (NBFCs) with respect to acceptance and repayment of public deposits will come into effect from January 1, 2025.
The revised guidelines, announced in August this year, include acceptance of public deposits like those relating to nominations, repayment of public deposit to meet certain expenses of an emergent nature, intimation of maturity of deposits to depositors and more.
After reviewing the current rules for HFCs, the RBI decided to introduce updated guidelines. These new regulations, along with some revised rules for NBFCs are outlined in two separate sections of the annex.
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Here is a look at the revised RBI guidelines regarding the public deposits for NBFCs.
Nomination updates: It is currently recommended that NBFCs develop an appropriate mechanism for acknowledging receipt of a properly completed form of nomination, cancelation, and/or variation of the nomination. Such acknowledgment should be provided to all customers, regardless of whether they want it.
Nominee in the passbook: NBFCs are encouraged to note the nomination details on passbooks or receipts. This should include the phrase “Nomination Registered” and the nominee’s name if the customer approves.
Premature payment: Small deposits may prematurely be paid to individual depositors, at the request of the depositor, before the expiry of three months from the date of acceptance of such deposits, in entirety, without interest.
As per the RBI circular, for public deposits, individual depositors can request premature withdrawal within three months of deposit. In such cases, up to 50% of the principal amount or Rs. 5 lakh (whichever is lower) can be withdrawn without interest. The remaining amount will earn interest at the agreed rate and will follow the existing rules for public deposits.
Critical illness: In cases of critical illness, individual depositors can request a full withdrawal of the principal amount of their deposit before three months from the deposit date. This withdrawal will be processed without any interest. Importantly, this provision also applies to existing deposit contracts where premature withdrawal rights were not allowed within the first three months.
Intimation of maturity of deposits: Previously,
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