The revised guidelines address the acceptance of public deposits with regards to nominations, repayment of public deposit to meet emergency expenses, intimation of maturity of deposits to depositors are the changes among others.
A few regulations that apply to Non-Bank Financial Institutions have also been revised. These new norms including the ability to withdraw smaller amounts, will be effective from Jan. 1, 2025, according an RBI circular.
A notable change here includes the ability to withdraw the principal in case of health emergency. In case of critical illness, the full amount of the principal sum of deposit, can be paid to individual depositors ahead of maturity. This can be done on depositor’s request before the expiry of three months from the date of acceptance of such deposits, without interest.
