13B.15
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Premature Withdrawal of Term Deposits
(i)Wherever a term deposit in NRE account is withdrawn before maturity, directions issued in this behalf by Reserve Bank including directions, if any, about levy of penalty should be complied with, except where it is otherwise provided in this Manual.
(ii)In cases where FCNR deposits are converted into NRE deposits before maturity at the request of account holders, the FCNR deposits should be treated as if they have been withdrawn prematurely for making new deposits in NRE accounts. The rule regarding rate of interest for premature withdrawal of FCNR deposits will be applicable in such cases.