Encashing of FDRs on due date of maturity when the date is falling on bank holidays
Many of us opening fixed deposit accounts with Banks both in PSUs as well as private. Have you ever checked whether the maturity proceeds credited in your account are correct specially when the banks are closed on the date of the maturity. Most probably, it may not be correct crediting.
I hope all of us must be aware that if the banks are closed on the date of the maturity, the FDRs need to be deposited with the Banks on the next working day and the Banks are mandated to provide the additional interest from the date of the maturity till date of encashment at the same rate at which the deposits have been made originally even if the current rate of interest has been reduced. Please check in such situations while the FDRs are being encashed. I had recently faced such a situation when the Bank staff were on strike and the banks were closed for 2 days. The PSU Bank on its own did not credit the additional interest for these two days and the issue was taken up accordingly. After the issue was taken up, I got the interest for these two days. more
I hope all of us must be aware that if the banks are closed on the date of the maturity, the FDRs need to be deposited with the Banks on the next working day and the Banks are mandated to provide the additional interest from the date of the maturity till date of encashment at the same rate at which the deposits have been made originally even if the current rate of interest has been reduced. Please check in such situations while the FDRs are being encashed. I had recently faced such a situation when the Bank staff were on strike and the banks were closed for 2 days. The PSU Bank on its own did not credit the additional interest for these two days and the issue was taken up accordingly. After the issue was taken up, I got the interest for these two days. more
Viewed by 2917
View all 26 comments Below 26 comments
Usually computer systems take care of such things like interest calculations and credit or renewals, these days. So unless the staff enter the wrong date, they cannot impact what is due to you. The employees do not benefit in any way, so let us not just paint everyone with the same brush. Some objectivity and suggestions for solutions would go a long way compared to just posting wrong doings and complaints. more
Jul 19
Checking and verifying is one thing but isn't this a calculated fraud / a deception knowingly perpetrated by the Banks . And in that case shouldn't the Regulatory Authority/ the Auditors/ RBI pull up the erring Bank Heads in no uncertain terms for defrauding the Public and unlawful gains? Small time shops cheating one is one thing but big Banks doing this is a serious matter of fidelity deficit. more
Jul 13
The dates of maturity are calculated by the Core Banking system without taking into account holidays for the year (It should). The customer loses only if a. he encashes the FDR and is not paid for the last day/s of holidays/strike etc. b. He renews from back date (maturity date) at a lower rate. Its, therefore prudent to check/calculate the interest and demand for correction of any shortfall. more
Jul 09
As per RBI guidelines, while issuing the FDR the Bank is expected to ensure that the maturity in the normal course should not fall on a holiday. If maturity date falls, say on a Sunday, the Bank should issue the FDR for one more additional day in the beginning itself. But in practice, no one in Banks bothers about this. Of course, there could be situations that a particular holiday or strike, etc., could not be known at the time of issuance. ALL SAID AND DONE, WHAT SHRI SK VIRMANI HAS SAID IS ABSOLUTELY CORRECT. FOR THE HOLIDAY/S PERIOD, THE CONTRACTED RATE OF INTEREST HAS TO BE PAID NOT JUST VALUE DATING IN THE SB A/C. The Customers must check and insist for contractual rate of interest for holiday/s period in case FDRs maturing on holiday/s. more
Jul 09
