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The Bank on request from the depositor, will allow withdrawal of term deposit before completion of the period of the deposit as per terms agreed upon at the time of placing the deposit. Partial withdrawal is not allowed for term deposits booked under preferential rates.

The Interest rate applicable for premature closure will be lower of:
  • The base rate for the original /contracted tenure for which the deposit has been booked OR
  • The base rate applicable for the tenure for which the deposit has been in force with the Bank.
The base rate is the rate applicable to deposits of less than Rs.1 Cr as on the date of booking the deposit.

For deposits > 5 Crs, the base rate is the rate applicable for 5 Cr deposits as on the date of booking the deposit.

For such premature withdrawals, including sweep-ins and partial withdrawals, the Bank will levy a penalty of 1%, on the applicable rate. However, penalty for premature withdrawal will not be applicable for FDs booked for a tenor of 7-14 days.