RBI on Friday tweaked the norms for interest on the amount that is left unclaimed with the bank after a period when the deposit matures. When a term deposit (TD) matures & proceeds remain unpaid the amount left unclaimed with the bank shall attract a rate of interest to a savings account or rate of interest on matured TD whichever is lower. A term deposit is an interest-bearing deposit received by the banks for a fixed period. Certain deposits that are included such as recurring, cumulative, annuity, reinvestment deposits & cash certificates. The norms are applicable for deposits in commercial banks, small finance banks, local area banks & cooperative banks.
Source: Financial Express