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Apr 17, 2015
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RBI allows banks to offer differential interest rates on term deposits
The Reserve Bank of India (RBI) has allowed banks to offer differential interest rates, based on whether their term deposits are with or without a premature withdrawal facility.Liquidity or ease of withdrawal, touted as the biggest advantage of bank fixed deposits (FDs), might soon be restricted due to this move.In its sixth bi-monthly monetary policy review, in February, the central bank had decided to introduce the feature of early withdrawal facility in a term deposit as a distinguishing feature for offering differential rates of interest.
Source -
http://www.business-standard.com
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