What are the rules regarding pre-mature payments?
A. The Bank may permit payment of deposit before maturity. The rules in this respect are broadly as under: (i) FCNR / NRE Scheme: · No interest is payable if the deposit is withdrawn before expiry of minimum maturity of 12 months from the effective date of deposit. · In other cases, interest is payable at a rate applicable on the date of deposit for the period run or the contracted rates, whichever is less, minus 1 % penalty in respect of NRE Deposits. For FCNR Deposits, interest is payable at a rate applicable on the date of the deposit for the period run minus 1 % penalty. However, if the applicable rate is less than 1%, no deduction will be made from principal amount. (ii) NRO Deposits: · No interest is payable if the deposit is withdrawn before expiry of 15 days in case of term deposit · Interest is payable at a rate applicable on the date of deposit for the period run or the contracted rate, whichever is less, minus 1 % penalty.
