Overdue FDR Interest

This query is : Resolved

Suman Kumar Agrawal (Querist)
Follow

19 July 2009 As per RBI instruction how much interest on overdue FDR given/credit by Commercial Bank. & Also inform when a FDR overdue ( Matured 9 Months ago) than how much interest bank wll give? whether rate of interest of the date when FDR Matured or current rate of interest which was applied for expired period also.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
Follow

20 July 2009 If the customer neither obtains payment nor renews the Fixed Deposit although the term is over, it is called an overdue Fixed Deposit. Payment/renewal of overdue Fixed Deposit is governed by following rules.

Renewal is carried out at the rate of interest prevailing on the date of maturity provided overdue period does not exceed 14 days from the date of maturity.

Where overdue period exceeds 14 days, interest would be paid provided the depositor renews the deposit for a further minimum period for which the deposit is lying overdue. If not renewed for a time equal to or more than overdue period, interest rate applicable to Savings Bank deposit is payable on the deposit.

The interest for the overdue period will be paid at the rate prevailing on the date of maturity or on the date of carrying out renewal, whichever is less. This interest may be paid to the depositor or clubbed with the deposit for renewal.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now