General Studies · Overdue Deposits and Renewal
According to the revised RBI guidelines, if a domestic term deposit matures and the proceeds are left unclaimed with the bank, what operational action should be taken regarding the interest?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The bank must compulsorily close the account on the maturity day and send a demand draft to the customer.
- 2The bank must automatically renew the deposit for the original tenure at the prevailing current interest rate.
- 3The matured amount earns interest at the savings bank rate or the contracted rate of the matured TD, whichever is lower.✓
- 4The matured deposit amount is transferred to a suspense account and ceases to earn any interest from the day of maturity.
Correct answer
The matured amount earns interest at the savings bank rate or the contracted rate of the matured TD, whichever is lower.
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