Have you ever wondered what you would do if you had a… fixed deposit Do you have an NBFC but want to withdraw it prematurely due to an emergency? Well, the latest guidelines issued by the Reserve Bank of India (RBI) to take steps to this end.
The banking regulator published a regulatory framework through a circular dated August 12 related to HFCs (Housing finance companies) and NBFC (non-financial financial institutions) (Non-Banking Financial Companies).
Various regulations applicable to NBFCs have been revised and the revised regulations have been shared in the latest circular of the central bank.
These rules list the guidelines regarding acceptance of public deposits. They also state that NBFCs aim to refund deposits to enable depositors meet certain emergent expenses.
Depositors must request an early withdrawal in the following cases:
YO. Small deposits:When the deposits are tiny (i.e. deposits that do not exceed ₹10,000 in value), may be paid in advance to depositors when the depositor so requests before the expiration of three months from the date of acceptance of said deposits, in full, without interest.
second. Other deposits: In the case of other public deposits, not more than 50 percent of the capital of the deposit or ₹5 lakh, whichever is less, may be paid in advance to individual depositors, on the request of the depositors, before the maturity of three months from the date of acceptance of such deposits, without interest.
The remaining amount, with interest at the agreed rate, will be governed by the provisions of the current instructions on public deposits.
III. Critical illnessIn the event of serious illness, 100 percent of the deposit capital may be paid in advance to individual depositors, at their request, within three months from the date of acceptance of such deposits, without interest.
IV. Calamity:Expenses of an emergent nature also include medical emergencies or expenses that occur due to calamities or natural disasters notified by the government.
V. Existing ContractsThe amount provided for in these provisions shall also apply to existing deposit contracts where the depositor is not entitled to early withdrawal of the deposit before the expiry of three months.
Please provide due date details
Till now, NBFCs were required to inform depositors about maturity details at least two months before the due date. The latest RBI instructions state that this period should be reduced from two months to 14 days.
Accordingly, the circular states that the NBFC will be duty bound to inform the depositor of the maturity details at least two weeks prior to the maturity date.
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