Interest Rates on Deposits

Notification Marquee

RbiAnnouncementWeb

Asset Publisher

Published on January 09, 2001

listen

PDF ( 3174 )

Interest Rates on Deposits

DBOD No. Dir.BC. 62/13.03.00/2000-2001

January 03, 2001
Pausha 13,1922(Saka)

Interest Rates on Deposits

In exercise of the powers conferred by Sections 21 and 35A of the Banking Regulation Act, 1949 and in partial modification of its Directive DBOD.No.Dir. BC.46/13.03.00/2000-2001 dated November 4, 2000, the Reserve Bank of India, being satisfied that it is necessary and expedient in the public interest so to do, hereby directs that the existing sub-clause (iii) of clause (a) of paragraph 14 thereof shall be substituted by the following with immediate effect:

"(iii) In the event of death of the depositor before the date of maturity of the deposit and the amount of the deposit is claimed after the date of maturity, the bank shall pay interest at the contracted rate till the date of maturity. From the date of maturity to the date of payment, the bank shall pay simple interest at the applicable rate operative on the date of maturity, for the period for which the deposit remained with the bank beyond the date of maturity.
However, in the case of death of the depositor after the date of maturity of the deposit, the bank shall pay interest at savings deposit rate operative on the date of maturity from the date of maturity till the date of payment."

2.The other provisions of the Directive DBOD.No.Dir.BC.46/13.03.00/2000-2001 dated November 4, 2000, shall remain unchanged.

[G.P. Muniappan]
Executive Director