As of my last update in September 2021, there was no specific recent rule issued by the Reserve Bank of India (RBI) pertaining to overdue Fixed Deposits (FDs). However, it’s important to note that RBI regulations and guidelines are subject to change from time to time, and there may have been updates or changes since my last knowledge update.
In general, when an FD matures, the account holder has a grace period to take action before the FD is considered overdue. The grace period is typically a few days, during which the account holder can decide whether to renew the FD, withdraw the funds, or give further instructions to the bank. If the account holder does not provide any specific instructions during this grace period, the bank may automatically renew the FD for the same duration at the prevailing interest rate.
If the account holder fails to take any action after the grace period and the FD remains unclaimed or unattended, the FD is considered overdue. In such cases, banks may have their own policies and procedures to deal with overdue FDs, and they may reach out to the account holder to remind them about the FD and request further instructions.
It is essential for account holders to regularly monitor the maturity dates of their FDs and take appropriate action within the grace period to avoid any inconvenience or potential issues with their investments.
For the most up-to-date information on RBI regulations and rules related to FDs and other banking matters, it is recommended to refer directly to the official website of the Reserve Bank of India or consult with a qualified financial advisor.