Clarification on Interest Application for Depositors who cease to be Indian Citizens

Clarification on Interest Application for Depositors Who Cease to Be Indian Citizens - reg

Sir/Madam,

With reference to the subject above, clarification has been sought by both BG HQ Region and SK Region regarding the interest application for accounts where the depositor has ceased to be a citizen of India. In this regard, please refer to the Gazette Notification G.S.R. No. 1003(E) dated 05.10.2018, Rule No. 9(5), which specifies the following interest application guidelines:

1. Scheme Interest: Interest at the scheme rate applies from the date of account opening until the deemed closure date, which is the last day of the month preceding the depositor's cessation of Indian citizenship.

2. SB Interest: From the deemed closure date until the actual closure of the account in Finacle, SB Interest applies.

Please ensure adherence to these instructions to maintain consistency and compliance with the regulatory guidelines.

This is for your information and necessary action.