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RBI changes rules on interest on unclaimed term deposits

The Reserve Bank of India has made changes in the norms for interest on the amount left unclaimed with the bank after a fixed deposit (FD) matures. Currently, unclaimed deposits attracted the rate of interest applicable to savings deposits in case a fixed deposit matured and the proceeds were left unpaid. The RBI said in a circular that if a term deposit matures and proceeds are unpaid, the amount left unclaimed with the bank shall attract a rate of interest as applicable to savings account or the contracted rate of interest on the matured term deposit, whichever is lower. The new rules will be applicable for deposits on all commercial banks, small finance banks, local area banks and cooperative banks.

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