Important changes made by the Reserve Bank of India (RBI) in the fixed deposit (FD) rules are going to be effective across the country from October 1. This new change is going to have a direct impact on the financial planning of bank customers, senior citizens and big investors. If you have also made an FD in the bank or are thinking of making a new investment, then it is very important for you to understand the depth of these changes. Let us know what impact these new guidelines will have on your savings and returns.
Same interest rate will be applicable in all bank branches
Under the new RBI rules, banks will now have to offer the same interest rate in every branch on the same fixed deposit amount accepted on the same date. It was often seen that different branches of the same bank offered different interest rates, which created confusion among common investors. After the implementation of the new provisions, this arbitrariness will be completely stopped. Now customers book FD of same tenure and same amount in any bank branch located in any corner of the country, they will get the same returns. This will bring transparency in the banking system and any kind of local level discrimination against customers will end.
Bulk Deposit and new rules updated daily
In this new structure of fixed deposits, huge amounts of Rs 3 crore or more have been categorized as bulk deposits. Banks can set different interest rates on these large deposits made by corporate houses, institutions, trusts and high net worth individuals as per their liquidity needs. Further, to further enhance transparency, the Central Bank has directed that all scheduled commercial banks shall mandatorily update the interest rates on bulk deposits on their official websites by 10:00 am on every business day (with a maximum grace period of 10 minutes). With this, investors and companies will get correct and accurate data on digital medium only before investing.
Will there be any impact on your old and existing FD?
Often this question comes in the mind of investors whether due to change in rules, the returns or interest rates of their old FD will change overnight? So let us tell you that these amended rules of the Reserve Bank will not have any direct impact on your already running fixed deposits. Your existing FD with the fixed interest rate and contract with which it has been booked will continue to remain safe till maturity. This new change is primarily designed to bring uniformity in determination of rates, their advance disclosure process and at the branch level. However, whenever you make a new FD or renew an old one, you will get transparent rates under the new rules.
What is special for common investors and senior citizens?
If you are a typical retail investor or a senior citizen who relies on FDs as a safe investment, this change is a positive step for you. Senior citizens will continue to receive additional interest as before, provided it is in accordance with the bank's policy and published rate list. Now you will not have to completely depend on the information given verbally by bank officials. You can already see the full list of official interest rates by visiting the bank's website. Overall, these rules, which will come into effect from October 1, make your investments more secure, transparent and clear.