Penalty on premature withdrawal of bank fd

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PRAVIN JAIN (Querist)
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05 August 2017 I have made one year term fd of ₹10 lakh in central bank of india on 01/08/2017.
As urgent need of money, i withdraw this amount on 05/08/2017.
But bank charging me ₹10,000 as penal interest at 1% for premature withdrawal. Is it logical to charge this? Pkease reply. Thanks.

PRAVIN JAIN

PRAVIN JAIN (Querist)
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05 August 2017 I am losing my principal amount by 1% and 18%gst on it in just 4 days.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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05 August 2017 Banks do have such policies.lease go through their website for penalty details and whether penalty is proper

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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05 August 2017 Almost all banks have such policies on prematurely closed FDs

Amol S Joglekar

Amol S Joglekar (Expert)
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06 August 2017 please check the application form when you deposited the money with Central Bank

PRAVIN JAIN

PRAVIN JAIN (Querist)
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06 August 2017 Payment before maturity will be available as per the prevailing rules. (1) Penal Interest @1% will be charged on premature withdrawal of FDR deposit of above Rs. 5 lac. (2) Upto Rs. 5 lac, no penal interest is charged on premature withdrawal of FDR deposit.

As shown on central bank of india site.
But i have made 10 fd receipts of ₹1 lakh.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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06 August 2017 In that case, write a mail to the branch and follow up for reversal of such charges

Amol S Joglekar

Amol S Joglekar (Expert)
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06 August 2017 what are you saying of GST 18% ? is it charged by the bank on premature withdrawal?

PRAVIN JAIN

PRAVIN JAIN (Querist)
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06 August 2017 18 % gst on penalty charges.

Amol S Joglekar

Amol S Joglekar (Expert)
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06 August 2017 so? how much is the GST?