RBI Allows Premature Withdrawal on All Bank Deposits Up to Rs.1 Crore

The Reserve Bank of India (RBI) has allowed banks to offer premature withdrawal on all bank deposits up to Rs.1 crore. This means that customers can now withdraw their money from fixed deposits (FDs) of up to Rs.1 crore before maturity without incurring any penalty.

This will give customers more flexibility in managing their finances.

The RBI has also hiked the bulk deposit limit for regional rural banks (RRBs) to Rs.1 crore from Rs.15 lakh. This means that RRBs can now offer differential rates on deposits above Rs.1 crore.

This is expected to promote financial inclusion by making it more attractive for people in rural areas to save their money with banks.The new measures have been introduced to protect small investors and promote financial inclusion.