If you have money deposited in the account of any non-banking financial company (NBFC), then you will be able to withdraw the entire amount within the first three months of accepting the deposit. The Reserve Bank of India said this on Monday. But it also said that the condition will be that you have to cite an emergency. According to the news of Bhasha, the central bank, in a review of the rules governing NBFCs, said that no interest will be paid for such premature withdrawal. These changes will come into effect from January 1, 2025.
Rules for withdrawal of money
According to the news, the central bank said that based on the definition of critical illness prescribed by the insurance regulator IRDAI, it will be decided whether a request falls under the category of such exemption or not. The central bank of the country said that in cases of critical illness, 100 percent of the principal amount of the deposit can be withdrawn within three months from the date of acceptance of such deposits on the request of the depositors. In this situation, interest will not be paid to the depositors.
Then up to 50 percent of the deposit amount can be withdrawn
Emergency situations include medical needs or natural disasters. If there is no emergency and premature withdrawal is sought within three months, NBFCs can pay up to 50 percent of the deposit amount without paying any interest. However, this amount cannot exceed 50 percent.
The central bank has decided that the instructions for appointment of branches and agents for collecting deposits, with changes, will also apply to deposit accepting HFCs, and necessary notification will be sent by the HFCs required in these instructions to the NHB. It also said that deposit accepting housing finance companies will separately set internal limits approved by the board within the limit of direct investment.
