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.
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This move will help build a base of medium-to-long-term assured deposits, enabling banks to better handle asset-liability issues.
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