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    Revision of Interest Rates On Domestic Term Deposits

    Uploaded by

    Lipsa Dhal
    The document summarizes revisions made to interest rates on domestic term deposits. Key points include: - Interest rates were increased for deposits between 1-3 years from 5.25-5.35% to 5.4-5.6% and for deposits over 5 years from 5.35% to 5.6%. - Senior citizens continue to receive 0.5% higher interest on deposits up to ₹10 crore and those aged 80+ receive an additional 0.25% on deposits over 5 years. - Interest rates on NRE deposits must comply with RBI guidelines and branches must adhere to guidelines on accepting bulk deposits over ₹5 crore.

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    Revision of Interest Rates On Domestic Term Deposits

    Uploaded by

    Lipsa Dhal
    44 views2 pages
    The document summarizes revisions made to interest rates on domestic term deposits. Key points include: - Interest rates were increased for deposits between 1-3 years from 5.25-5.35% to 5.4-5.6% and for deposits over 5 years from 5.35% to 5.6%. - Senior citizens continue to receive 0.5% higher interest on deposits up to ₹10 crore and those aged 80+ receive an additional 0.25% on deposits over 5 years. - Interest rates on NRE deposits must comply with RBI guidelines and branches must adhere to guidelines on accepting bulk deposits over ₹5 crore.

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    21015 REVISION OF INTEREST RATES ON DOMESTIC TERM DEPOSITS

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    The document summarizes revisions made to interest rates on domestic term deposits. Key points include: - Interest rates were increased for deposits between 1-3 years from 5.25-5.35% to 5.4-5.6% and for deposits over 5 years from 5.35% to 5.6%. - Senior citizens continue to receive 0.5% higher interest on deposits up to ₹10 crore and those aged 80+ receive an additional 0.25% on deposits over 5 years. - Interest rates on NRE deposits must comply with RBI guidelines and branches must adhere to guidelines on accepting bulk deposits over ₹5 crore.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    44 views2 pages

    Revision of Interest Rates On Domestic Term Deposits

    Uploaded by

    Lipsa Dhal
    The document summarizes revisions made to interest rates on domestic term deposits. Key points include: - Interest rates were increased for deposits between 1-3 years from 5.25-5.35% to 5.4-5.6% and for deposits over 5 years from 5.35% to 5.6%. - Senior citizens continue to receive 0.5% higher interest on deposits up to ₹10 crore and those aged 80+ receive an additional 0.25% on deposits over 5 years. - Interest rates on NRE deposits must comply with RBI guidelines and branches must adhere to guidelines on accepting bulk deposits over ₹5 crore.

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    of 2

    MAIN : Dep-15 /2022-23 DT. 01.07.

    2022

    CO: RESOURCES & GOVERNMENT


    SUB : Int Dep-2 FILE M-1 S-104
    RELATIONSHIP DEPARTMENT

    Revision of Interest Rates on Domestic Term Deposits

    Further to CO: R&GR Circular Dep-9/2022-23 dated 31.05.2022, the interest rate on Domestic term
    deposits stands revised as under with effect from 04.07.2022.

    Less than ₹2 crore ₹2 crore to ₹5 crore

    Period % per annum


    Existing Revised Existing Revised
    7 days to 14 days 2.80 2.80 2.90 2.90
    15 days to 29 days 2.80 2.80 2.90 2.90
    30 days to 45 days 3.00 3.00 2.90 2.90
    46 days to 90 days 3.25 3.25 2.90 2.90
    91 days to 120 days 3.50 3.50 2.90 2.90
    121 days to 180 days 3.75 3.75 2.90 2.90
    181 days to less than 9 months 4.00 4.00 3.90 3.90
    9 months to less than 1 year 4.40 4.40 3.25 3.25
    1 year 5.10 5.25 3.55 3.55
    Above 1 year to less than 2 years 5.20 5.40 3.25 3.25
    2 years to less than 3 years 5.25 5.50 3.25 3.25
    3 years to less than 5 years 5.35 5.60 3.25 3.25
    5 year 5.35 5.60 3.25 3.25
    Above 5 years 5.35 5.60 3.25 3.25

    The above interest rates are also applicable to NRE term deposits, Tax Saver Scheme and
    Capital Gains Scheme Type B (Term Deposits) 1988 Scheme.

    The interest rate applicable for “Deposit/s of above ₹5 crore” and approval for acceptance of such
    deposit/s shall be obtained from Treasury Branch. This condition is also applicable to cases
    where the aggregate value of deposits of an individual customer is above ₹5 crores for the
    day. Aggregate value of deposits placed on a day for different tenors / identical tenor will be
    reckoned for deciding applicable interest rate. Zones and Branches to follow the guidelines
    spelt out in circular no. Genl.10/2020-21 dtd.16.06.2020 before acceptance of Bulk Deposit.

    1
    IMPORTANT :

     Senior Citizen Domestic Term Deposit Accounts: Additional rate of interest payable
    would be 0.50% p.a. for amount up to `10 crore for all tenors over the card rate in respect
    of Short Term Deposits, Fixed Deposits and Money Multiplier Deposit Schemes. Similarly, for
    Recurring Deposit accounts, additional interest rate would be eligible for the period from 6
    months to 120 months (In multiples of 3 months). The above ceiling is applicable to all types
    of term deposits standing in the name of the Senior Citizen as the principal account
    holder at one or more branches put together. However, no Single deposit be opened in
    a day for more than ₹2 Cr within the overall limit of ₹10 Cr tagged to a single CIF.

     A special offer for Senior Citizens (Aged 60 years & above) was offered an additional
    0.25% higher rate of interest over & above the additional rate that is presently being offered for
    normal Senior Citizen on Term Deposit (0.50+0.25 = 0.75) for deposit bucket “above 5 Years
    up to 10 Years”
     “IB – Golden Ager” – A Special Term Deposit Account for Super Senior Citizen” (Age 80
    years and above) was launched on 17.12.2020 and offered additional 0.25% higher rate
    of interest over & above the additional rate that is presently being offered for normal
    Senior Citizen on Term Deposit for all deposit buckets. The circular no. Dep.28/2020-21
    dtd.16.12.2020 may be referred for additional details.
     Deposits of Senior Citizen opened under Capital Gains Scheme Type B (Term Deposits)
    1988 Scheme is not eligible for this benefit. Similarly, in the case of term deposits
    standing in the name of an HUF, the Karta of the HUF is not eligible for higher rate of
    interest, even if he is a senior citizen, as the beneficial owner of the deposit is the HUF
    and not the Karta in his individual capacity.

     The interest rates on NRE term deposits is subject to compliance of all the extant
    exclusive/specific RBI Guidelines on NRE accounts relating to minimum/maximum term of
    deposits, category of customer etc.

     The revised interest rates on domestic term deposits are applicable only to fresh deposits and
    on renewal of maturing deposits.

     Interest on Overdue Domestic Term Deposit: - If a Term Deposit (TD) matures and proceeds
    are unpaid, the amount left unclaimed with the bank shall attract rate of interest as applicable
    to savings deposit or the contractual rate of interest on the matured TD, whichever is
    lower. For further clarification, refer Circular No. Dep-05/2021-22 dated 05.07.2021

     Branches are advised to strictly desist from splitting of deposits including the rolled
    over deposits and quote the interest rate applicable for the total amount for which
    deposit is required to be placed whether for identical tenor or different tenors.

    (HIMANSHU KANSAL)
    GENERAL MANAGER (R&GR)

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