Del. HC: Liquidated Damages Mentioned in Agreement Can’t be Awarded in Absence of Proof of Loss  ||  MP HC: S.375 Marital Sex Exemption Also Provides Exemption Under Section 377 of IPC  ||  SC: SARFAESI Doesn’t Give Any License to Bank Officers to Act Against the Scheme of Law  ||  All. HC: Court Can’t Mechanically Reject Application for Waiving Off Cooling Period u/s 13B of HMA  ||  Kar. HC: Acquittal Order Can’t be Put in Challenge by Stranger to the Case  ||  Kar. HC: Alternate Remedy Can’t be Used as China Wall Against Invocation of Writ Jurisdiction  ||  Bom. HC Upholds Constitutional Validity of Goa’s Green Cess Act  ||  Del. HC: Not Court’s Business to Demonstrate Morality of an Act unless it has Caused Harm  ||  Del. HC: Cost Accountants and Chartered Accountants Not Similarly Placed Under Law  ||  SC: No Party Ought to be Vexed Twice in a Litigation for One and the Same Cause    

RBI reviews instructions relating to interest on overdue domestic deposits - (02 Jul 2021)

Banking

Reserve Bank of India (RBI) has issued the review of instructions on Interest on overdue domestic deposits. RBI’s decision to allow banks to offer the lower of either the savings deposit rate or fixed deposit rate on matured Fixed Deposits is with aim to discourage businesses from using a bank for treasury management. RBI had issued master directions in exercise of powers conferred under Sections 21 and 35 A of the Banking Regulation Act, 1949. The provisions of the Directions are applicable to every Scheduled Commercial Bank {including Regional Rural Banks (RRBs)}, Small Finance Banks, Payment Banks and Local Area Banks.

The RBI has directed Banks to refer to directions on Interest Rate on Deposits and Co-operative Banks- Interest Rate on Deposits, in terms of which 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 deposits. The rate of interest to be paid on renewal of overdue term deposits shall be subject to the stipulation contained in Section 4 of Master Directions.

As per Section 9B of Master direction dated 3rd March, 2016, if a Term Deposit matures and proceeds are unpaid, the amount left unclaimed with the bank shall attract rate of interest as applicable to savings deposits. Now with the amendment of Section 9B, if a Term Deposit (TD) matures and proceeds are unpaid, the amount left unclaimed with the bank shall attract rate of interest as applicable to savings account or the contracted rate of interest on the matured TD, whichever is lower.

Tags : INTEREST   DEPOSIT   INSTRUCTION  

Share :        

Disclaimer | Copyright 2023 - All Rights Reserved