The Reserve Bank of India (RBI) has allowed banks to offer higher rates of interest to those who do not agree to prematurely withdraw their high-value fixed deposits.
Banks can offer such rates to depositors who can keep a minimum of Rs 15 lakh for the tenure of the deposit. At present, depositors are entitled to withdraw their deposits prematurely without giving any reason to the banker.
This move will help build a base of medium-to-long-term assured deposits, enabling banks to better handle asset-liability issues.
"Exciting news! Elets Banking & Finance Post is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!
Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/
Get a chance to meet the Who's who of the Banking & Finance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.