NRE Rupee Term Deposits
1. What is the minimum and maximum period for NRE deposits?
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The minimum is one year and the maximum is currently 10 years.
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Deposits can be accepted beyond 3 years also but the interest is applicable for 3 years period alone will be payable for such long term deposits.
2. How is the rate of interest determined in NRE Term deposits?
Interest on NRE deposits have now been deregulated by RBI. We offer attractive rates for your NRE term deposits. For details, click here.
3. Is premature withdrawal of the NRE term deposit allowed?
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Yes. However, this is subject to the levy of a penalty and at the discretion of the bank.
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No interest is payable if the deposit is withdrawn before expiry of minimum maturity of 12 months from the date of deposit.
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In case the deposit is closed after completion of minimum period of 1 year, there will be a penalty of 1% (The applicable rate of interest for the period for which deposit remained with the bank minus 1% shall be paid).
4. Is any interest payable on overdue deposits?
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When the branch receives renewal instructions where the deposit account is maintained, within 14 days of the due date, renewal with retrospective effect (i.e. from the due date) is permitted.
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When renewal instructions are received after 14 days from the due date, renewal with retrospective effect (i.e. from the due date) is not permitted. However simple rate of interest can be paid for the intervening period i.e. for the period from the date of maturity to date of receipt of instructions for renewal of deposit by applying the lower rate of interest prevailing on the above two dates.
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The interest so calculated for the broken period shall be added to the maturity amount and a new deposit will be opened from the prospective date.
