Ans. In terms of paragraph 13 read with paragraph 5 of these Directions, the rate of interest on matured deposits standing in the name of a deceased individual depositor or two or more joint depositors, where one of the depositors has died, will be as per comprehensive policy duly approved by the Board of Directors or any committee of the Board to which powers have been delegated.

Ans. Yes.  In terms of paragraphs 15, 18 and 27 of Master Direction- Reserve Bank of India (Interest Rate on Deposits) Directions, 2025, banks can levy penalty for premature withdrawal as per the comprehensive policy approved by their Board of Directors. The components of penalty should be clearly brought to the notice of the depositors at the time of acceptance of deposits.

Ans. No. As per paragraph 20.2.1 of these Directions, banks cannot accept recurring deposits under FCNR(B) Scheme.

Ans. In terms of paragraph 22 of these Directions, interest will be paid as per following:

1. If the period from the date of maturity till the date of renewal (both days inclusive) does not exceed 14 days, the rate of interest payable on the amount of the deposit so renewed shall be the appropriate rate of interest for the period of renewal as prevailing on the date of maturity or on the date when the depositor seeks renewal, whichever is lower.

2.  In all other cases of renewal, interest rates for the overdue period on the renewed amount shall be determined by treating it as a fresh term deposit.

3. If, after renewal, the deposit is withdrawn before completion of the minimum stipulated period under the scheme, banks authorized under FEMA, 1999 may, at their discretion, recover the interest paid for the overdue period i.e., period beyond the original date of maturity.

Ans. No. In terms of paragraph 29.1 of these Directions, banks cannot pay any remuneration or fees or commission or brokerage or incentives on deposits in any form or manner to any individual, firm, company, association, institution or any other person except:

1. commission paid to agents employed to collect door-to-door deposits under a special scheme.

2. commission paid to Direct Selling Agents/ Direct Marketing Agents as part of the outsourcing arrangements by commercial banks

3. remuneration paid to Business Facilitators or Business Correspondents.

4. incentives granted to staff members of co-operative banks as approved by Reserve Bank of India from time to time.