Ans. Banks can accept interest free deposits only in current account in terms of paragraph 29.5 of Master Direction- Reserve Bank of India (Interest Rate on Deposits) Directions, 2025.

Ans. In terms of paragraph 4.22 of Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions, 2025, reinvestment deposits are those deposits where interest (as and when due) is reinvested at the same contracted rate till maturity which is withdrawable with the principal amount on maturity date.

Ans. No. In terms of paragraph 9.1.6 of these Directions, children (including minor) are not eligible for additional interest admissible to deceased member of the bank’s staff.

Ans. No. As the money belongs to the minor child and not the bank’s staff, additional interest cannot be paid, in terms of paragraph 9.1.6 of these Directions.

Ans. No. In terms of paragraph 9.1.6 of these Directions, the benefit of additional interest on term deposits held by bank’s staff member/ retired staff member singly or jointly with family members is only available where the staff member/ retired staff member is the principal account holder.

Ans. Provisions related to penalty are contained in paragraph 15 of these Directions. The detailed procedure for premature withdrawal including partial premature withdrawal are determined by the banks in terms of their comprehensive Board approved policy.

Ans. In terms of paragraph 29.8 of these Directions, savings bank account can be opened in the name of only those Government Department/ Government Schemes given in Schedule-I of Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions, 2025.

Ans. No. In terms of paragraph 29.8 read with item (vii) of Schedule-I of these Directions, savings bank account cannot be opened in the name of a private entity for implementation of the Government funding schemes.

Ans. No. In terms of item (iv) of Schedule-I to paragraph 29.8 of these Directions, societies registered under Societies Registration Act, 1860 (SRA,1860) or societies registered under any other law in force in a State or a Union Territory with the same object & purpose of promoting literary, scientific, and charitable activities as the SRA,1860, are eligible to open savings bank account with banks. Accordingly, savings bank accounts cannot be opened in the name of any other society/societies.

Ans. In terms of paragraph 10.2, if a Term Deposit (TD) matures and proceeds are unpaid, the amount left unclaimed with the bank will attract rate of interest as applicable to savings account or the contracted rate of interest on the matured TD, whichever is lower.