Post workplace RD account: Process modified for simpler settlement on maturity
2 min readThe Department of Post stated that it’s receiving many representations from RD or recurring deposit account holders concerning the want for credit score of excellent RD mortgage/curiosity quantity on matured RD accounts in software program platform. After analyzing the matter, the Department of Post has made needed amendments.
Accordingly, put up workplaces which can be Core Banking Solution or CBS enabled will deduct excellent RD Loan/curiosity quantity from the matured RD account. The deducted quantity shall be adjusted by means of workplace account on the time of RD maturity cost. In different phrases, the excellent RD Loan/Interest of matured RD accounts shall not be collected from the account holders on the time of cost of maturity worth.
In case mortgage isn’t repaid until the maturity, mortgage plus curiosity will is deducted from the maturity worth of the RD account.
Post workplace RD accounts mature in 5 years or 60 month-to-month deposit) from the date of opening. Accounts might be prolonged for additional 5 years by giving utility at involved Post Office. Interest price relevant throughout extension would be the rate of interest at which account was initially opened.
A put up workplace RD account might be retained as much as 5 years from the date of maturity with out deposit additionally.
Loans might be taken in opposition to RD accounts after 12 installments are deposited and account is sustained for 1 12 months. The depositor can avail mortgage facility as much as 50% of the stability credit score within the account. Loan might be repaid in a single lump-sum or in equal month-to-month installments. Interest on mortgage shall be relevant as 2% + RD rate of interest relevant to the RD account.
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