Current procedure for complete partition i.e closure of HUF

Yes , partition of huf can be done either total or partial. Partition is possible only with the free consent of all the members. partition can be done by two methods
1. Family settlement
under this method partition is done by family settlement and does not require stamp duty and need not be registered though legally binding .

2. deed registered
registration deed can be used for partition but may incur substantial cost.

as in your case fd amount has to be divided equally among the members

Banks are required to deduct tax when interest income from deposits held in all the bank branches put together is more than Rs.40,000 in a year (Prior to FY 2019-20, it was Rs.10,000). A 10% TDS is deducted if PAN details are available.

Assuming Interest Per Year would be around 160000..
Hence it is below the Basic Exemption Limit provided HUF does not have any other income..
If HUF total income is below the taxable limit (2.5 lakh p.a), you can avoid TDS by submitting Form 15G to the bank requesting them not to deduct any TDS.

Further, As per section 10(2), amount received out of family income, or in case of impartible estate, amount received out of income of family estate by any member of such HUF is exempt from tax.
(However, section 10(2) is for income of huf not share on partition)
But there are certain court ruilings which ordered gift/share from HUF not taxable in the hand of coparcener giving reference of Section 10(2) and 56(vii) etc

Mother is also equally partner in the share of HUF.

Procedures for recognition of partition:- The HUF, which has been hitherto assessed, must make a claim to the assessing officer that the HUF properties have been subjected to total partition.

The Assessing Officer will make an inquiry in to the claim after giving notice to all members of the HUF and if he is satisfied that the claim is correct, he will record a finding that there was a total partition of the HUF and the date on which it has taken .

Partition has to be a total partition. Partial partition is not recognized under the Income Tax Act.

Hence the income to HUF will be not taxable if it is below 2.5 lakh p.a..

But I am not sure about the Share of HUF you will get on partition in ur hand will be taxable or not.. I think it should be exempt too..

https://www.pwc.in/assets/pdfs/news-alert-tax/2019/pwc_news_alert_6_august_2019_gift_received_by_an_individual.pdf

https://m.economictimes.com/wealth/tax/tax-queries-answered-by-dilip-lakhani-senior-chartered-accountant/amp_articleshow/54440206.cms