2025 Fixed Deposit Rules: Key RBI Guidelines Implemented from January 1

 

2025 Fixed Deposit Rules: Key RBI Guidelines Implemented from January 1

Revised Fixed Deposit Rules 2025: The Reserve Bank of India's updated regulations for housing finance companies (HFCs) and non-banking finance companies (NBFCs) regarding the acceptance and repayment of public deposits will be implemented starting January 1, 2025.

The updated guidelines, announced in August this year, address aspects such as public deposit nominations, repayment for emergent expenses, and notifying depositors about maturity, among others.

Following a review of the existing rules for HFCs, the RBI has introduced revised regulations. These new guidelines, along with amendments for NBFCs, are detailed in two separate sections of the annex.

Here’s an overview of the revised RBI regulations concerning public deposits for NBFCs.

Nomination Updates: NBFCs are advised to establish a system for acknowledging the receipt of completed forms related to nomination, cancellation, or variation of nomination. This acknowledgment should be provided to all customers, regardless of their preference for receiving it.

Nominee in the Passbook: NBFCs are advised to record nomination details in passbooks or receipts. This should include the phrase "Nomination Registered" along with the nominee's name, provided the customer consents.

Premature Payment: Small deposits can be fully repaid prematurely, at the depositor's request, within three months of acceptance, but without any interest.

Premature Withdrawal Policy: According to the RBI circular, individual depositors can request premature withdrawal of public deposits within three months of the deposit date. In such cases, up to 50% of the principal amount or ₹5 lakh (whichever is lower) can be withdrawn without interest. The remaining balance will earn interest at the agreed rate and adhere to the existing public deposit rules.

Critical Illness Provision: For cases of critical illness, individual depositors can request the full withdrawal of their principal deposit amount within three months of the deposit date. This withdrawal will be processed without interest. Notably, this provision also extends to existing deposit contracts where premature withdrawals were previously restricted during the first three months.

Intimation of Deposit Maturity: NBFCs were previously required to inform depositors about the maturity date of their deposits at least two months in advance. This period has now been reduced to 14 days, requiring NBFCs to notify depositors at least 14 days before the deposit matures.