Premature withdrawal to be allowed on all bank FDs of up to Rs 1 crore: RBI hikes limit of non-callable FDs

The RBI has raised the limit for non-callable fixed deposits, now allowing premature withdrawal on all bank FDs up to ₹1 crore. For FDs up to ₹10,000, the entire amount can be withdrawn within three months without interest, while for larger deposits, up to 50% or ₹5 lakh (whichever is lower) can be withdrawn within three months, also without interest. These changes, effective January 1, 2025, offer greater liquidity and flexibility to depositors, making it easier to access funds in emergencies or for financial planning.