The Reserve Bank of India (RBI) is introducing several modifications to Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) effective January 2025. These changes aim to provide more options and security for depositors without compromising the stability of the sector. Key changes include:
* Increased flexibility for small depositors to withdraw fixed deposits early without earning interest
* Allowing partial premature withdrawal for deposits above ₹10,000
* Permitting withdrawal of fixed deposits entirely in cases of critical illness
* Strengthening the nomination process for depositors
* Expanding reasons for withdrawal from savings accounts to include natural disasters
* Reducing the notification period for maturity of securities from two months to two weeks
* Enhancing the security of public deposits by requiring NBFCs to hold more liquid assets
These changes will affect not only new fixed deposits but also existing ones. The modifications aim to provide more flexibility and security for depositors, especially in emergency situations. The RBI’s goal is to ensure that NBFCs have a satisfactory level of financial stability, allowing them to discharge their obligations to depositors and maintain the stability of the wider economy.
Source: https://www.bizzbuzz.news/rbi/rbi-new-fd-rules-for-nbfcs-key-changes-effective-january-2025-1346324